Bitcoin's little sibling might now be looking a bit undervalued.
Bitcoin (BTC) has become known for its meteoric price rises, and Litecoin has historically tended to follow close behind, as the silver to bitcoin's gold. This has mostly held true through bitcoin's rise.
But recent days have seen their prices start to separate, with LTC rising even faster even as bitcoin hits a trough. Litecoin and bitcoin might not be going their separate ways yet, but it's still an unusual decoupling.
These problems on bitcoin's side of the fence might be doing a good job of highlighting the features of Litecoin and drawing new investors. It's also possible that many bitcoin buyers are simply exchanging their BTC for LTC in order to facilitate multiple transactions, and then changing it back when they want to consolidate it.
However, bitcoin has seen a massive surge of new buyers in recent months and it's possible that they've simply started exploring altcoins more widely. Previous surveys have found that a fair proportion of bitcoin users (roughly 25%) diversify their investment with other coins. As new users come into the cryptocurrency ecosystem through bitcoin, many will naturally move along to other coins and spread the investment around.
Litecoin is a natural next step for many It's being well-known, well-developed and has a lot of clear parallels with bitcoin.
This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.
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