It is no secret that no coin is immune to the current bloodbath that has being going on in the cryptocurrency markets. All I see is red! Red! And more red! at every crypto-exchange I look at this week.
Some have speculated that the dip was triggered by the utterances of the South Korean Justice Minister, Park Sang-Ki. He had stated that the country was going to ban crytocurrency trading. This then resulted in all markets doing a downward spiral since the 15th of this month. Estimates show that the average loss in value of coins since then, hovers at around the 40% mark.
Another theory that has been postulated is the coming Chinese New Years to be celebrated on the 16th of February this year. This theory puts forward that many Chinese traders are saving for the thunderous and exciting festivities accompanied with a new year in China. As a result, many have systematically cashed out. One can assume the South Korean Justice Minister’s announcement was the catalyst needed for Chinese traders to cash out.
A third and final theory I have heard, is that Bitcoin futures mature on the 26th of this month: that is on Friday. This means that the Whales on Wallstreet who had bet that the price of Bitcoin would fall, are probably manipulating the market to their advantage. This might include the South Korean Justice Minister’s announcement. This is the mother-load of conspiracy theories but when money is factored into the picture, anything is possible. Especially when dealing with a cryptocurrency total market cap of over $0.5 Trillion at the moment of writing this.
Whichever explanation sounds plausible, Litecoin has suffered drastically in terms of price value on the numerous exchanges. On December 18th, Litecoin had partially Mooned to $360 according to coinmarketcap.com. However, the crash of Christmas sent the prices tumbling down and has been on a downward trend since then. It is currently trading at $176. This is a drop of 51.11%.
Also responsible for the massive drop of value, is the announcement by Litecoin’s founder, Charlie Lee, that he had sold all of his Litecoin and was concentrating his efforts towards promoting the Litecoin project in a manner similar to how the Dash team and the Stellar Lumens founders have been operating.
The two projects of Dash Coin (DASH) and Stellar (XLM) are run as Not For Profit organizations. With Charlie owning coins, he would have had a stake in the project and would be tempted or accused of pumping up the value for profit.
Now, with his investment liquidated, one can only predict that Litecoin will reach the present value of Dash in the exchanges of $778 during this dip and $1,1619 during its peak value. This high value will only be reached once the news of Charlie is overtaken by the disastrous market correction going on. This correction is a blessing in disguise for Charlie and Litecoin for all the attention has been diverted towards it.
If I were Charlie, I’d come out guns blazing and preaching the Good News about Litecoin and forming partnerships left right and center like the Ripple CEO, Brad Garlinghouse is doing.
If the theory about the Bitcoin Futures affecting the markets is true, then there will be a rebound of the markets on Friday. This will mean all coins will show considerable gains with Litecoin blasting through the Stratosphere and past the Earth’s gravitational pull…and towards the Moon, where it shall Light it Up!
There is also the News circulating that Litecoin will make an announcement of a partnership with a major, well known company.
Speculation is high with many Litecoin holders uttering the names of major social media companies and even known online retailers.
But in my opinion, Litecoin will moon regardless!
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