Litecoin’s native Cryptocurrency, LTC, has overtaken the native Token for Bitcoin Cash ABC, BCH, to become the world’s 7th Largest Cryptocurrency. The main factor for the edging out of BCH is due to a huge gain of 11% that was recorded in the 24 hours of December 16th.
Coincidentally, this comes following a hard fork on November 24th that split Bitcoin Cash into Bitcoin Cash ABC and Bitcoin Cash SV leading to a widespread Crypto market crash that is yet to self-correct. The hard fork affected BCH the most in comparison to other Cryptos as it has lost more than 70% of its value and plunged from its former 5th rank to the current 8th.
LTC Investors Will Have More Confidence To Invest
Top performing Cryptocurrencies often allure investors to acquire them. This, in turn, eases the sell-off pressures and strengthens demand. On the RSI scale, such a phenomenon is proved when the scale rises above 30 which indicates an increase in demand relative to selloffs. This is considered a turn-around for a bearish cycle.
Therefore, with LTC up one more slot on the Cryptocurrency market, investors will have more confidence to invest in the Digital Asset in anticipation for future price surges or for other purposes. This could be a factor for wooing institutional investors into buying LTC. This market segment has the financial capacity to make a difference and to spur a far-reaching positive market reaction.
Will The Gains Be Sustained?
Some of the key questions that investors are grappling with following the recent surge are centred on whether LTC has finally broken out of the bear cycle to a bullish run or whether it is just a short-term shock.
To answer this question, it is advisable to introspect both sides of the argument. On the notion that LTC has not entered a breakout, there is the argument that the bear cycle has been ongoing from the beginning of January 2018 to the present time and there is no substantial factor to reverse the trend. The only difference is that the following the chaotic Bitcoin Cash on November 24 after disagreements between Roger Ver and Craig Wright and their factions, LTC like the other Cryptos plunged more sharply. Hence, on this perspective, LTC would still be under bearish market pressures.
On the other perspective, the fact that Litecoin has overtaken Bitcoin Cash means that the Crypto community prefers Litecoin more. Therefore, all factors constant, the bears will still prevail but more buyers will invest in LTC.
Conclusively, LTC will sustain its gains but on the shadow of an easing bear-run depending on the performance of Bitcoin (BTC). Meanwhile, its new position will likely hold in the short term and midterm.
Litecoin is a p2p online Cryptocurrency that is designed to facilitate near zero cost and instant payment solutions to anyone at any global point. It is also an open source and decentralized platform that gives users financial autonomy. Its key features include improved storage efficiency and faster confirmation times that are ideal for enhancing liquidity in Digital Asset markets.
LTC market cap is currently $1,556,081,352 at $26.11/LTC. On the other hand, BCH market cap is capitalised at $1,437,163,368 at $82.06/BCH.