Litecoin (LTC) Expected To Lose Most Of Its Gains To The Next Corrective Wave
Litecoin (LTC) is likely to erase most of its hard earned gains during the next corrective wave as it is now overbought like no other cryptocurrency. This is because LTC/USD received a big boost off its halvening hype in anticipation that the bear market was over. Now that most people realize that the bear market is in fact not over, the price of Litecoin (LTC) might be due for a big fall. While the upcoming halvening event in August is definitely something that could have led to the recent rallies in Litecoin (LTC), we believe that most institutional investors are trying to reduce their exposure to Litecoin (LTC) now that Bitcoin (BTC) is getting closer to doing what Litecoin (LTC) set out to do: making transactions faster and cheaper.
Litecoin (LTC) entered the cryptocurrency scene as a fork of Bitcoin (BTC) capitalizing on the high cost and slow speed of Bitcoin transactions. This made Litecoin (LTC) very attractive to a lot of investors who thought Litecoin (LTC) could end up being a better version of Bitcoin (BTC). Later on, Litecoin (LTC) was portrayed as Digital Silver as Bitcoin (BTC) is considered Digital Gold. The question to ask back then would have been, “If we keep on creating more and more of these forked coins, what is the purpose of Bitcoin?” The purpose of Bitcoin (BTC) was not to create a faster and cheaper payment system, no. The sole purpose of Bitcoin (BTC) was to create a digital currency that solves the double spending problem. If we keep on forking other coins out of Bitcoin (BTC), this exacerbates the double spending problem that Bitcoin (BTC) was supposed to fix.
Chart for LTC/BTC (1W)
We believe that the market at this point is now considerably different than what it was when Litecoin (LTC) first entered the scene. Back then people did not care much about merits or demerits, they just accumulated the coins they could and if it was a coin as cheap as Litecoin (LTC) that had a chance of becoming a better alternative of Bitcoin (BTC), there was no way they were going to leave that while investing in Bitcoin (BTC). So, a lot of people invested in Litecoin (LTC) back then and it profited off its use case until now. Upgrades like Lightning Network are going to eliminate the need for Litecoin (LTC) or Bitcoin Cash (BCH). Institutional investors who see all major developments in this space already know it which is why they are reducing their exposure to Litecoin (LTC).
It is very likely that the recent surge in the price of Litecoin (LTC) before its next halvening was a careful ploy to get rid of some bags while retail investors are still eyeing the next halvening and its effect on the price. We could still see the price of Litecoin (LTC) pump after the next halvening but there is little reason to believe that this cryptocurrency is going to stick around for long. The comparison between Litecoin (LTC) and Silver is absurd at best. Silver is a precious metal that has a lot of use cases. On the other hand, anyone could fork a coin off Bitcoin (BTC) and call it Bitcoin Gold, Bitcoin Private, Bitcoin Cash, Litecoin or something else. So, who gets to decide which one of them is silver, which is palladium and which is copper? These are just marketing gimmicks to sell the cryptocurrency like it has a long term use case while the reality is that it is only a matter of time before useless forks like these are put out of business with upcoming Bitcoin (BTC) upgrades.
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