Litecoin Price Analysis: Reason Why LTC Increased to $50 – Litecoin Against USD Prediction
As most of the top-ten cryptocurrencies had major changes and fluctuations in price during the last weeks, Litecoin experienced the same as it surged above and over the $50 level.
In the digital currency market, it is very hard to be able to pin-point down the factors that did effect the change in price, however for Litecoin it could be two significant ones in this case: supportive-function with bitcoin concluded by the activation of the Segregated Witness (SegWit) and its similar characteristics (hedge-like) to Bitcoin Cash (BCH).
According to Tuur Demeester – Litecoin is named as the true Bitcoin hedge resulting from the SegWit-enabled network. The part when the selling pressure was made on BCH, was a climbing factor for Litecoin price against the US Dollar.
“If BCH pump fails, money could roll into LTC, it being a real Bitcoin (BTC) hedge. I just invested some BCH profits into LTC. With real ‘Bitcoin hedge’ I mean [that] Litecoin has SegWit and it will likely merge other cutting edge tech ahead of BTC,” Demeester.
What could be connecting the two events (BCH sell-off, LTC increase) is the time when it happened. It all happened during the week when Bitcoin cash from the all-time high record close to $1,000 declined low as $640, while Litecoin took an upward movement above the $50 mark.
It is likely that the sell-off of BCH attracted investors in South Korea and China because they have been BCH’s two largest markets and the demand for Litecoin has been increasing at a rapid rate in both markets. As the quick-term profit making selling pressure happened for BCH, investors took what they got and stepped aside towards Litecoin.
As the second and significant market changer related to Litecoin price is the Segregated Witness activation in Bitcoin Blockchain Network. The SegWit – by the Bitcoin Core Development team is a transaction adoption, fluctuation malleability fix and scaling solution, was first activated and “used” by Litecoin in July so this resulted as a confidence-giver for the Bitcoin community to implement the SegWit in its network.
According to Charlie lee, the creator of Litecoin – any cross-network swaps that become real through cross-blockchain channels are of great importance. On top of that with SegWit live in Litecoin and Bitcoin network this all is made possible.
“Version 0.3 of LND added a Litecoin operating mode as a step towards multi-chain Lightning Network for cross-chain atomic swaps. I’m working with [Litecoin Foundation Directors] Xinxi Wang and Franklyn Richards today to test out Lightning on Litecoin mainnet. Any real litecoins lost will be worth it,” Lee said.
With Lightning Network 0.3 to be released, all cross-blockchain swaps for Litecoin and bitcoin will be done at ease and seamlessly:
“In this release, we’ve added support for a toggle-able Litecoin chain and wallet backend. This means that lnd is now capable for easily switching back and forth between the Bitcoin and Litecoin chains. This is very exciting as the code scaffolding put in place to make this switch seamless also lays some important groundwork for the multi-chain lnd operating mode that is under development,” the document read.
The upward momentum that lately Litecoin Price is experiencing mostly happened because of the team behind it supporting the Silver Coin with Blockchain development with no stop. So a cross-connection with Bitcoin, a $72 billion network is just another plus for the Litecoin Surge that will happen.