Litecoin (LTC) is likely to erase most of its hard earned gains during the next corrective wave as it is now overbought like no other cryptocurrency. This is because LTC/USD received a big boost off its halvening hype in anticipation that the bear market was over. Now that most people realize that the bear market is in fact not over, the price of Litecoin (LTC) might be due for a big fall. While the upcoming halvening event in August is definitely something that could have led to the recent rallies in Litecoin (LTC), we believe that most institutional investors are trying to reduce their exposure to Litecoin (LTC) now that Bitcoin (BTC) is getting closer to doing what Litecoin (LTC) set out to do: making transactions faster and cheaper.
Litecoin (LTC) entered the cryptocurrency scene as a fork of Bitcoin (BTC) capitalizing on the high cost and slow speed of Bitcoin transactions. This made Litecoin (LTC) very attractive to a lot of investors who thought Litecoin (LTC) could end up being a better version of Bitcoin (BTC). Later on, Litecoin (LTC) was portrayed as Digital Silver as Bitcoin (BTC) is considered Digital Gold. The question to ask back then would have been, “If we keep on creating more and more of these forked coins, what is the purpose of Bitcoin?” The purpose of Bitcoin (BTC) was not to create a faster and cheaper payment system, no. The sole purpose of Bitcoin (BTC) was to create a digital currency that solves the double spending problem. If we keep on forking other coins out of Bitcoin (BTC), this exacerbates the double spending problem that Bitcoin (BTC) was supposed to fix.
Chart for LTC/BTC (1W)
We believe that the market at this point is now considerably different than what it was when Litecoin (LTC) first entered the scene.