By Gaurav S. Iyer, IFC Published : December 7, 2017
On Thursday morning, Bitcoin was the one cryptocurrency inside the prime 10 with inexperienced numbers flashing beside its determine. All the others had been drenched in crimson, Litecoin included.
LTC prices depreciated 5.14% in direction of the U.S. dollar, bringing the Litecoin to USD alternate value down to $96.52.
At first look, this looks like a routine fall, provided that cryptos normally switch by double digits in a single day. But you’ll have to place this worth movement in an even bigger context.
Every crypto inside the prime 10 depreciated over the previous 24 hours. Meanwhile, Bitcoin superior 18%, inserting its worth above $15,00zero for the first time. And, on the similar time, the cryptocurrency market capitalization rose by 7.7%, ruling out the idea money was fleeing the market.
The solely plausible rationalization is that money rotated from altcoins to Bitcoin.
We can confirm this suspicion pretty just by checking the BTC Dominance metric, which reveals Bitcoin’s market share relative to the entire cryptocurrency market cap. It moved from 57.08% to 63.20% in under 24 hours.
Why did this rotation begin, though?
The CBOE’s imminent addition of Bitcoin futures comes to ideas because the obvious rationalization. (Source: “CBOE to Begin Bitcoin Futures Trading December 10,” CoinDesk, December 4, 2017.)
After all, BTC prices jumped into movement upon info of the December 10 initiation, whereby Wall Street retailers will lastly get their fingers on Bitcoin futures. And it’s solely pure that after the preliminary movement from that info, improvement followers would have hopped on the bandwagon.
Daily Litecoin Chart
The end end result’s bigger Bitcoin prices, albeit on the expense of altcoins like Litecoin.
However, if rumors about an epic fast on Bitcoin futures are true, we may even see this place unwind after December 10. The correlation between futures and spot prices are tenuous, however it’s safe to say that investor confidence is stretched pretty skinny in the intervening time.
It’s not troublesome to take into consideration a state of affairs whereby BTC plummets because of short-sellers are scoring enormous on its derivatives contract. That state of affairs would likely end successfully for Litecoin.
In any case, these short-term fluctuations simple out over time. We nonetheless protect our Litecoin worth forecast for 2018, which predicts the international cash breaking above $200.00.