Litecoin has skyrocketed in value this year, with its latest all-time high bringing the altcoin's year-to-date (YTD) gain above 8,000%.. The digital currency, which is very similar to Bitcoin, rose to as much as $360.93 today, according to CoinMarketCap.. At this price, Litecoin had risen more than 8,200% YTD, additional CoinMarketCap figures show.. The cryptocurrency later pulled back somewhat, trading at $350.52 at the time of report.. [Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]. Litecoin has been enjoying a continued, upward movement this year, which has resulted in some very handsome gains.
When explaining this sharp appreciation, market analysts have repeatedly pointed to a handful of variables.. Bitcoin And Litecoin.
Some market observers have emphasized the tight price relationship between Bitcoin and Litecoin, noting that the two digital currencies have frequently moved in tandem.. Bitcoin has had a very strong year, climbing from less than $1,000 to nearly $20,000 on the CoinDesk Bitcoin Price Index (BPI).
As Bitcoin prices have marched higher, Litecoin has managed to follow in its wake, according to Tim Enneking, managing director of Crypto Asset Management.. While both digital currencies have have great years, Litecoin has risen far more than Bitcoin, which has climbed less than 2,000% in 2017.. Sustained Interest In Crypto
Litecoin has pushed higher at a time when investors have been showing a sustained interest in cryptocurrency.. The total market capitalization (market cap) of these digital assets rose to a fresh, all-time high of $616.9 billion today, according to CoinMarketCap.. By reaching that level, this total market cap has climbed more than 3,300% this year, after starting out 2017 at roughly $17.7 billion.. "Litecoin is finally benefiting from the broader interest in Cryptocurrencies," said Oliver Isaacs, cryptocurrency investor and influencer.. He added that "I see no reason, despite still being very early stages, why the price cannot eventually match or even surpass Bitcoin's price over time.". Market Mania?
As cryptocurrencies have surged, more than one analyst has warned that the market for these assets may have become a bit frothy.. Jacob Eliosoff, a digital currency fund manager, described the returns digital currencies have created in the last few years as "staggering," likening the situation to the tech boom of the 1990s.. He noted that during this boom, technology stocks experienced a "huge" increase in value followed by a "huge" decline.. Arthur Hayes, co-founder and CEO of Seychelles-based cryptocurrency exchange BitMEX, also weighed in on situations where asset values experience sustained increases.
Humans like to buy in what has previously gone up. The positive feedback loop drives the price higher and higher, until it doesn’t. The skill is getting out before everyone sob