A graph has recently been making the rounds on Twitter, Reddit, and the like showing the rise and fall in price of Litecoin. There’s nothing new in that: if you follow the right groups you can see dozens of similar graphs covering all of the major (and not so major) cryptocurrencies.
interesting, however, is the similarities between the most recent Litecoin price graph and that of another altcoin – the biggest of them all, Bitcoin. YouTube analyst Tyler S recently compared the latest price graphs for both of the digital currencies and discovered that they are practically identical. The rise and fall in Litcoin’s fortunes is mirrored almost exactly by Bitcoin’s, albeit on a much smaller scale.
However, in terms of cryptocurrency
(and, indeed, any investment opportunity) scale really doesn’t mean all that much. What matters is percentage growth, and the near overlapping of these two graphs paints a very clear picture: Litecoin is following the same trajectory as Bitcoin. That is to say, both currencies peaked around 16 December 2017, and have suffered from great fluctuation in their relative values, dropping significantly before recovering a little, and dropping down again. If the graphs are to be trusted, both Bitcoin and Litecoin investors should see a levelling out of the two altcoins’ market value by around the first week in April.
Comparisons with the other big cryptocurrencies – Ethereum, NEO and Cardano – show a similar pattern, but usually peaking and levelling out later on in the lifecycle of the graph (sometimes as much as a month down the line). Only Litecoin is mirroring Bitcoin directly at this time.
So what does this mean for Litecoin? Perhaps nothing. However the crypto market has, historically, always moved in the wake of Bitcoin. When its price rises, the other altcoins will rise too, a few weeks later. When its price drops, so will the other digital currencies, again following a certain delay.
With Litcoin following Bitcoin so closely, it’s entirely possible that, when Bitcoin breaks out from the pack again and sees significant rises, Litecoin will do the same, concurrently with the more established market leader.
Featured Image Original Source: Wikipedia Commons