After reports surfaced that South Korea might be planning to shut down exchanges, a number of cryptocurrencies took a plunge on Thursday, December 28. The majority of the market is probably paying the most attention to Bitcoin, which has taken the market by storm in 2017 but has seen itself into a slump recently after hitting an all-time high more than two weeks ago.
Of course, Bitcoin, in my opinion, is the more popular digital currency out of all of the options, but there is still a great number of people who have invested time and money in the other digital currencies that are available on the market and these coins, like Bitcoin, are also suffering, which is why we need to keep a close eye on the likes of Ethereum, Bitcoin Cash, and for today’s article, Litecoin.
Litecoin: What is it?
Some might refer to Litecoin as the little brother of Bitcoin, but we like to think of it more as its own being, a P2P cryptocurrency that utilizes blockchain technology – which also took 2017 by storm – in order to maintain and control a public ledger with ease.
On Thursday, following South Korea’s news, Litecoin dropped more than 10%, reaching a trading session low of $228.
For perspective, over the course of the past five days, Litecoin has dropped approximately 20%. For those who don’t know, a drop of 20% over five days is equal to an almost $60 decline.
While I’m aware that most cryptocurrencies are sinking, I am still a little taken back that Litecoin has dropped as much as it has as of late considering it was only last week that the cryptocurrency hit a record high while its market capitalization surpassed $20B for the first time.
There are a number of predictions as to the direction bitcoin will be heading in next year, with some suggesting that it will start trading at $8,000, but no one has really come forward – at least not that I know of – and predicted the direction Litecoin will be heading in. That said, I think today’s decline, and all of this week, might give investors a bit of an indication.
What do you think?
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