ForexMinute.com – Abruptly and unexpectedly, the Litecoin market cap and value reached to its all-time low in the last 24 hours, breaking the desired support levels all at once. At one point of time, the LTC/USD was being traded at around $6.5 but fell massively by, what we think, a huge dump, eventually taking its value more than $1 down within the span of a few hours.
While connecting the dots, one can see that the Litecoin market was already under too much negativity since the arrival of ASICs. Scrypt miners have expressed their inability to generate enough return on their investment in these machines and thus are shorting the mined Litecoins against the market demand. Reportedly, many mining pools are also dumping Litecoins immediately for other leading digital currencies.
People however are still optimistic about Litecoin reaching two digital figures in the future. They are mostly the miners and investors who are holding Litecoins from 2012 and 2013. Though since January – the same period when Alpha Technology announced to take pre-orders for its Scrypt ASIC Mining machines – the Litecoin prices and market cap has dropped around 400%.
We although can’t blame the entire dump on miners. There should indeed a certain ratio between miners and holders. Miner indeed dump the coin but it is the holders which ultimately decides whether they want to circulate the coin inside the Litecoin economy or exchange it for other profitable coins. Such decisions are further influences by the cryptocurrency’s development modules and competitiveness. In today’s scenario, Litecoin has indeed found challenges in other feature-rich coins like Darkcoin and NXT. It seems like that the silver tag is not working anymore.
But passing through all the speculations, one cannot reject the fact that cryptocurrencies are prone to be unstable in terms of prices. The only thing that can make these digital coins survive are adaption. Litecoin hopefully has the second largest adaption rate after Bitcoin. Also, the LTC is also expected to rebound anytime soon as short term investors might want to but it at low. But eventually, the FUD generated by this shocking dump will live for few days at least.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org
Subscribe to our daily forex newsletter by visiting www.forexminute.com/newsletter