Litecoin’s price made a return to its usual $75 value after a short hiatus in the lower 60’s region following the announcement made by China in relation to ICOs.
Litecoin was no different to other cryptocurrencies in that it suffered a short decline in its price recently. China recently announced that it is suspending ICOs in the country and has deemed it illegal to raise funds by launching new cryptocurrencies. Anyone who raised money using this method was asked to return the funds. Many other countries have taken some action and raised doubts over the practice of selling coins and providing special services to investors during the initial coin exchange. However, that didn’t mean the country banned cryptocurrencies, and Litecoin’s return to its $75 price is proof of that.
Following the ICO announcement by the People’s Bank of China, Litecoin’s price had dropped to as low as $60.8. This caused many investors and Litecoin holders to break into a cold sweat. But as is the case with cryptocurrencies that have been around for some time, Litecoin picked itself up within a few days, and is back to the $75 price, much to the relief of everyone involved with it. Whether it was those who already held Litecoins, or those who purchased them during the recent plunge, the 12.87% growth in the past 24-hours is welcome news.
The reason for this surge is the Asian Exchange, as usual. The Asian Trade prefers Litecoins to Bitcoins, which means that Litecoin, specifically, is more heavily influenced by Asian Exchange than Bitcoin. Despite trading heavily in Litecoin, the price of Litecoins in Asia is set around $75, while the Western platforms set it at $80. The Asian Exchange’s influence on Litecoin is evident when you look at the fact that 65% of the Litecoin trading volume in the last 24 hours came from OKcoin, Bithumb, and Huobi.
The total trading volume for Litecoin, over the past 24 hours, has been around $925 million. This is despite the fact that markets all over the world are still facing ripple effects from the ICO announcement by China. But Litecoin has seen an upward spike after a few days of hysteria. When you consider the ICO announcement by China and see this activity in LTC, it’s plain to see that there was no intention to stop trading in cryptocurrencies. Banks and regulators just want to slow things down a bit in order to better understand ICOs. There’s nothing else about it, and there’s certainly no malicious plotting and scheming involved.
The return to the $75 price for Litecoin also shows that it is worth investing in cryptocurrencies at the moment. Diversifying your funds and using a cryptocurrency can reap huge benefits. It might be a little risky to bet your horses on a new cryptocurrency that promises to deliver a lot in the future. But if you talk about cryptocurrencies that have been around for a while, and have a solid base, like Bitcoin, Litecoin, etc., then there’s no need to worry. The past has shown that these currencies can take a hit every now and then, but they always pick themselves up and allay all fears related to loss of funds.
The all-time high for Litecoin is reported at $90. With the activity in LTC over these past 24 hours and its swift return to $75 after a few days of chaos, it might be well on its way to a new all-time high. While the current overall trading volume of $925 million is less than its much frequented $1billion bracket, it is a substantial figure nonetheless. The price fluctuates quite frequently. The all-time low of $60.8 was caused by China’s decision against ICOs. But as experts had said immediately, it was not a fatal blow to cryptocurrencies, and they will continue to thrive for a while.