After Bitcoin (BTC) hits a new all-time-high, Litecoin (LTC) breaks through to the highest price it has seen in over a year.
Silver to Gold
While Bitcoin (BTC) gets all the big congratulations and handshakes, Litecoin (LTC) has been slowly growing behind the scenes. Originally intended to test out new features that might make the Bitcoin network unstable, Litecoin has been a major also-ran in the world of crypto.
While Bitcoin has grown tremendously, Litecoin has been lagging close behind, almost like clockwork. LTC’s trend essentially shadowed BTC’s. However, LTC outperformed BTC in the past few days, despite BTC’s major rise.
Since the start of 2014, Litecoin has risen by about 3,652%. Still, for much of that time BTC might have been a better investment.
During the 2017 bull run, Litecoin had a moment in the sun when it reached about $300, surpassing the rate of growth of Bitcoin significantly. That, of course, ended in a dive, and maybe there has been enough time to recover and just say it: a popped bubble.
After Litecoin’s price ratcheted back to Earth, it seemed to underperform Bitcoin, despite the same trends. However, on Dec 18, 2020, BeInCrypto’s technical analysts showed how Litecoin broke out from major resistance. This was both in relation to the US Dollar and BTC.
Some say that Litecoin is the silver to Bitcon’s gold. With the US federal government now appearing close to a new stimulus package, some crypto-lovers think that prices will continue to rise. Retail investors and companies will have more money, and Wall Street workers will have their bonus checks. And they are likely to spend them with the fear of US Dollar inflation in mind.
In other news from Wall Street, the mammoth US exchange Coinbase has begun filing for its IPO. Messari Research valued the company at $28 billion. So, if there is extra cash floating around from the stimulus and Wall Street, it could go into crypto.
And while LTC has underperformed BTC for months, it is starting to catch up in a big way.
Kickstart of Alt Season?
As one of the most seasoned altcoins, LTC might be looked for as a harbinger of altseason. However, the good people at blockchain center clearly suggest that alt season has not begun.
Quantify Crypto, a research analysis website, showed that many technical indicators for Litecoin were bullish. This seemed evident to them especially in the context of Litecoin’s outperformance of Bitcoin in the last few days (the price is now around $120). The website also noted in a tweet that Litecoin has been by far outperforming other altcoins.
Historically, alt coins have pumped in price following Bitcoin. DeFi this year threw a wrench in that narrative, but there is some sense to it. Active traders hold their fungible crypto as BTC, and try to multiply it by “stacking sats” in alternative currencies. In other words, when BTC grows in value, then slows, traders look to other coins to extend gains further. Coin Bureau has a good explanation of this cycle:
Whatever the next couple of months brings to crypto, that parabolic uptick at the end of the Litecoin chart has certainly enticed dreamers.