While negative sentiment and FUD about Bitcoin and other cryptocurrencies has dominated the media, LTC has been making bullish moves when traded against BTC between March 7th and 9th. Most people noticed that the price of Litecoin continued to decline through March 9th when traded against the dollar, in parallel with Bitcoin, Ethereum and most of the digital currency market. After LTC bottomed out at $161.32 on March 9th, according to CoinMarketCap, investors rallied and drove the price up over $185, to a current value of $179. However, savvy digital coin traders noticed that Litecoin began improving against BTC on March 7th. Most of these traders likely swapped their BTC for LTC on the pure crypto exchanges, with a delay of almost two days before the fiat traders on exchanges such as Coinbase/GDAX and Gemini started buying up Litecoin, which has been around since 2011, having a much longer lifespan than most coins that are traded today.
Investors who were scared by this latest downturn most likely dumped weak hands containing coins with little utilitarian value, and put those funds back into Litecoin as a more established, stable cryptocurrency. The question is, why not Ethereum or Bitcoin?
The answer may be related to price. Bitcoin has been valued at five figures, flirting with $20,000 per coin at its peak. Even at its current low, BTC is valued at just under $9,000. Ethereum peaked in the $1,300 range and is still valued at nearly $700 per ETH. Litecoin has never reached those levels. At its peak, LTC was valued at just over $370, or about half of what ETH is trading for today. Some investors might consider the $185 price tag a steal for a coin that has the market cap and longevity of Litecoin. If you believe that it’s undervalued, priced at just about 50% of its all-time-high, then this would be the time to pick up a few more coins.
Since I get blamed every time LTC price goes down, I’m going to take 100% credit for why LTC is the only top coin in the green today. You’re welcome! 😂 pic.twitter.com/U981FYYi4f
— Charlie Lee [LTC] (@SatoshiLite) March 9, 2018
While Litecoin is having the most noticeable bounce-back, several other coins are also taking an upturn. Ethereum and Ripple had a bit of a bounce, as did Stellar Lumens, NEM, Nano, OmiseGo and several other popular coins. If this upturn continues through the weekend, then many investors who either bought the dip or HODL’d will be smiling on Monday. This might suggest that the SEC warning to exchanges issued on March 7th was at least a contributing factor to what sent prices spiraling throughout the week. As the news fades into the distance, we may be blessed with another rally until more news comes out about the SEC cracking down on ICOs and digital currency exchanges.
In the meantime, fasten your seatbelts. This rollercoaster isn’t going away any time soon. We can expect that more announcements will come out from the SEC, the CFTC and international governments like China, India and Korea. However we can also expect that many investors will get over their short-term emotional reactions to the normal ups and downs in this market, and they’ll remember why they got in to begin with.