Bitcoin Japan And Litecoin Disrupted Bitcoin, a crypto-currency, has been a major topic for a long time but it has been hit by a bump in popularity recently. Bitcoin’s price is now down 70% from it’s all-time high while the price of other digital currencies is surging. Bitcoin Japan’s price has collapsed almost 90% from its peak. Litecoin is down 60% and Ethereum is down 35%. Litecoin is another cryptocurrency, with many of the features of Bitcoin and some of its limitations. Litecoin has been used by early investors in Bitcoin to hedge their bets. Although a number of current investors are seeking a return to Bitcoin, a number of cryptocurrency investors, particularly Chinese, have been looking for some alternative cryptocurrencies to increase their returns. The main features of Litecoin are that it is faster than Bitcoin and this is the main reason why the price is growing more rapidly than Bitcoin. Litecoin is now the fifth largest digital currency and its mining process has now been officially modified to remove Bitcoin’s power advantage. Litecoin has been issued by a company, called LitePay, which focuses on providing its currency for payments at cash registers. Its share price is now over 35 times the level of Bitcoin’s, suggesting a major upsurge is coming. The news about the first ever crypto-lawyer has also been interesting. Anish Kapadia, an attorney with the Chicago-based firm of Loeb & Loeb, had set up a company to help set up cryptocurrency law firms to serve the American market. He told a press conference held in New York: “I can’t come out and claim that there are 50 crypto-lawyers in the United States. I would love to say that but I don’t think that’s the case. We’re really, really early. Right now the existing attorneys and law firms who are in the blockchain space are growing very quickly. Some people want to get their foot in the door.” The SEC has announced it will be holding a series of hearings on a virtual currency exchange and this is now the first public announcement of the SEC’s interest in Bitcoin and cryptocurrencies in general. The agency is set to address issues surrounding companies that convert Bitcoins to dollars. For example, the UK based Bitstamp exchange has said it expects to register as a money services business in the coming weeks. Other potential virtual currency exchanges have said they are interested in registering but no exchange has yet been approved. In the US, the agency has no jurisdiction in money services businesses and will require the exchanges to register if they wish to do business in the US. The SEC has also announced a series of hearings to examine digital asset exchanges and exchanges that allow investors to buy and sell Bitcoin. This will include the trading of initial coin offerings, a fund raising method of issuing new currencies for the purpose of creating a digital store of value. Although the UK and US have had this type of legislation in place for several years, cryptocurrencies, in particular Bitcoin, have had a distorted perception of their prices. The SEC’s planned hearings are seen as a good sign that they are now getting seriously interested in cryptocurrencies, opening the door to actual trading and the possibility of the value of Bitcoin rising, as has happened with Litecoin. The SEC’s statement is unlikely to have any effect on Bitcoin price in the short term as the new legislation is not likely to affect Bitcoin’s popularity as a store of value for its buyers and users. It will be important for the SEC to be cautious when regulating cryptocurrency exchanges to prevent the manipulation of price and enable the blockchain transactions to occur more rapidly. Other countries are also aware of the risks. India, which has launched numerous digital currency regulatory initiatives over the past few months, announced earlier this year that it planned to launch its own national cryptocurrency in 2018. However, such a move was likely to face regulatory obstacles in the country. This leaves Bitcoin with a significant chance of hitting $2,000 per coin within the next few weeks. However, the week ahead will be critical as both Litecoin and Bitcoin are facing an important opportunity to pick up new users. Even if Bitcoin is unable to reach $2,000 or even half of that level, it may still be undervalued for now. For more on the Bitcoin bubble and our investment in Litecoin, please see: >>>Read Richard’s Articles and The Value of Bitcoin, Litecoin, and Ether <<Be Ready For Anything >>Currency Bulls Q1 2016 >>Funding Bitcoin through Regulation Previous Articles by Richard Atkins These 2 Bitcoin Initiatives Are Ready To Overtake PayPal In 12 Months (December 6, 2015) 9 Easy Ways To Make Thousands Of Dollars With Cryptocurrencies (November 3, 2015) The Shift To The Internet Of Money Will Create Massive Change For Digital Currency Investors (September 18, 2015) Electronic Currency Futures Signals An Investment Boom In Digital Currencies (July 17, 2015) [[wysiwyg_imageupload:47576:]] For some odd reason that eludes me, the price of Litecoin rallied during the very day that Bitcoin began crashing. It appears the majority of Litecoin traders sold Bitcoin on the first of the crashing bubble, or perhaps they could have sold Litecoin at that time. Either way, they probably thought that Litecoin was relatively safe and they should cash out a very small amount of Litecoin (they probably only owned it for short periods) to sell Bitcoin at a lower price, thus realizing a nice profit, and buy more Bitcoin. The problem with this is that the majority of Litecoin traders probably held onto their Litecoin instead of selling it and converting it into Bitcoin. Unfortunately, with the help of a few Bitcoin whales, Litecoin never really recovered after the crash, remaining in the $40-$50 range for many months. This gave rise to a large amount of Litecoin vs. Bitcoin trading, which has remained relatively high during the past few weeks. Litecoin’s rally can also be seen as the beginning of a counter-trend move that is beginning to show signs of correcting the typical selling that occurred during the Bitcoin bubble. When you look at the volume of Litecoin trading (low) vs. Bitcoin (high), you will notice that Bitcoin is still clearly the dominant trading instrument in the currency universe. I would not consider a reversal in Litecoin’s trading pattern as a signal that Bitcoin is now undervalued, but it is a sign that Litecoin is becoming more of a hedge for Bitcoin investors, not only as a hedge against a potential Bitcoin crash, but also as a hedge against more Bitcoin exchanges being shut down (like the recent ordeal in Thailand) and/or the coming of a government-sponsored crypto-currency. Litecoin’s continued price rally gives more credibility to the idea that it will not only survive, but will even thrive in the aftermath of the Bitcoin bubble. It also suggests that a lot of Bitcoin investors may be looking to sell Bitcoin to convert to Litecoin, potentially creating a major upside pull for Litecoin. Which brings me to the next point. At the time of this writing, many Litecoin traders are not considering investing in Litecoin while waiting for the Bitcoin bubble to burst, but rather, they are looking to buy Litecoin before it reaches the all-time high of $100 per coin. Some of this may be driven by an attempt to ride the Bitcoin wave higher, while the rest are simply looking to grab a few more Litecoins for their portfolio before they become even more attractive than Bitcoin. I have already discussed this issue a few times here at Investor’s Business Daily. However, with Litecoin approaching $60 per coin, it could be a good time to reevaluate the Litecoin situation, given it appears that investors are ignoring the counter-trend and thinking that there is an easier exit. Litecoin’s chart shows that the $50 resistance level may be a great support level to buy. Once Litecoin gets over this mark, it will be interesting to see what happens. The chart also shows that Litecoin could be in for a rally in the $80-$100 range, which would be a long way from the Bitcoin peak. This rally would be a little too much to ask for just yet, but at least it will be an indication that more and more investors are looking to lock in some profits by buying Litecoin before it begins rallying towards the final set of resistance levels. Of course, many Bitcoin traders believe that they will be able to profit from this Bitcoin bubble by quickly selling Bitcoin, once the all-time high is hit, and going to Litecoin, which they believe will be the next winner. In this scenario, investors would be most likely dumping Bitcoin into Litecoin (or other cryptocurrencies) right at the peak of this bubble, when the Bitcoin market is most vulnerable. My colleague Jeff Sonderman has also made this suggestion in his last two videos, and he may be on to something. I’ll leave the final word to Jeff, in this video about the pros and cons of a Bitcoin bubble. Disclosure: I own a few Litecoins (LTC). Chart courtesy of @litecoin. Sharing is caring! 0 Shares Related 1 Pocket Reddit Tumblr LinkedIn Twitter Facebook Pinterest Like this: Like Loading… Tagged: Litecoin, litecoin bubble, fork, Bitcoin, Litecoin bubble, Bitcoin crash, coinmarketcap, Litecoin, LTC, volatility You can currently follow @kyletorpey on Twitter. Kyletorpey provides investment advice focused on crypto currencies. Comments comments Powered by Facebook Comments Just your average Joe, playing around with models and visuals in his spare time. I am an independent market analyst. I provide analysis about the crypto currency and digital currency markets. I am not tied to any exchange or corporation. Related Comments comments may be charged for access to or use of this site. This is an independent blog and should not be associated with Cointelegraph, the sponsor of this site, and CoinWeek as a whole. Comments comments TAGS: SIGN UP NOW – DOWNLOAD COINWEEK for Android GO DIRECTLY TO YOUR GMAIL EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors. Interested in the news? Follow Cointelegraph on Twitter and Facebook. VN:F [1.9.22_1171] please wait… Rating: 4.0/10 (1 vote cast) VN:F [1.9.22_1171] Rating: -1 (from 1 vote) If Bitcoin just goes up… Related Posts: IMPORTANT: The Bitcoin Price MUST Stay Above $800.00 for Big Bitcoin Exchange Investments to Kick In! (2/7/2013) Bitcoin Is Not A Future World Reserve Currency! (3/15/2013) Did We See The Bottom In Bitcoin? (3/16/2013) Bitcoin Was Foretold In 2002 By Long-Term Prediction Expert Nathaniel Popper (3/16/2013) Related Posts: PARTY PEOPLE: BUY LITECOIN AND THE WORLD WILL BE A BETTER PLACE! (2/25/2013) BEWARE! Crypto Currency Bubble; Bitcoin Price Was Supposed To DIVE Below $200.00 This Year (4/9/2013) The Bull Case For Litecoin Is The Highest Ever Proposed By an Analyst (6/6/2013) ALSO READ: THE BUY AND HOLD SIGNS FOR BITCOIN Disclosure: I own LTC. Editorial Disclosure: None. This article was written by Derek Wallbank, a contributor for Cointelegraph, who is long BTC and BCH. Suggested Stories: Want to be a Cointelegraph contributor? Send us an email at [email protected] now! Image Credit: Litecoin Don’t want to miss the latest news? Follow us on Twitter, and become a fan on Facebook. The post Is Litecoin About To Hit New All-Time Highs? appeared first on Bitcoin News. Do you have something awesome to share with the world? Click here to share Do you ever

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