Bitcoin
Does Litecoin Have What It Takes To Take On Bitcoin?
The excitement around Litecoin is building up, as the cryptocurrency continues to consolidate above the $100 mark. Despite pulling back after touching record highs of $106, the cryptocurrency has clawed back and remains well supported for more gains.
The cryptocurrency is currently trading above a major bullish trend line with support at the $99 mark intact. Immediate resistance is at the $103-104 mark above which the digital currency could make a push for the $106 handle, ahead of a potential new record high.
On the downside, $96-$100 range acts as a major support level. As long as Litecoin continues to trade above $96, it remains elevated for more gains. In addition to renewed investor interest on cryptocurrencies, a number of factors are acting in favor of Litecoin continued upward run.
Litecoin Chart courtesy of coinmarketcap.com
Litecoin vs. Bitcoin
Like some of the major cryptocurrencies, Litecoin has been one the best performing digital currencies this year. Solid performance is already fuelling talk that the digital currency could hit record highs of $1000, faster than initially thought.
Even though the digital currency is yet to trade above the $100 handle for an extended period, the fact that its underlying technology offers significant benefits continues to enlist strong interest from investors.
Bitcoin has come under criticism on the fact that it takes approximately 10 minutes to process transactions. Litecoin, on the other hand, takes approximately 2.5 minutes, a performance that continues to strengthen its competitive edge. In addition, Litecoin offers lower transactions fees compared to its rival.
Choosing Litecoin at the expense of bitcoin would be a no-brainer for businesses looking to enjoy fast transactions speeds as well as lower fees.
There is no doubt that bitcoin holds a competitive advantage over Litecoin given its popularity and market value. However, as more people start using cryptocurrencies, businesses are most likely to settle for digital currencies that provide more synergies when it comes to transactions speeds and fees.
Is Litecoin Undervalued?
Given the synergies that Litecoin offers, it goes without saying that it is undervalued. The fact that it is trading at less than one-hundredth of bitcoin points to an imbalance given its benefits and edge. It is highly likely that it will close this gap going forward.
However, as the cryptocurrency market heats up, Litecoin price should receive a boost resulting in an increase in its price and value. Speed and cost advantages should work in its favor as people and businesses look for cheap and fast methods for exchanging money.
Litecoin publicity has been low key compared to other cryptocurrencies. However, it remains one of the most robust digital assets when it comes to exchanging availability and merchant acceptance which should continue to drive its price as the crypto market expands.
Image courtesy of cormac70 via Flickr
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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