Litecoin Explodes Higher After Flood Of Chinese, Korean Buying In Search Of Latest Cryptobubble

While Bitcoin and Ethereum appear stuck in sideways limbo action after last week's "crash" from which they both rebounded promptly, other altcoins are gaining a lot of interest, mostly from Asian buyers in desperate need of a new bubble to chase higher. And Litecoin (which was recently added to Coinbase) is the cryptocurrency which has fallen squarely in their sights, having soared nearly 50% in the past 24 hours to over $48...

... approaching its all time highs.

Having missed out on much of the surge in Bitcoin and Ethereum in recent weeks, Litecoin is, if only for the time being, the primary focus of cyrpto traders. With over $1 billion trading volume in 24-hours, Litecoin has become the latest darling of Chinese and Korean momentum chasers. A quick look at the source of activity reveals that over 50% of the volume is out of China and Korea.

However, as the Merkel points out, the bigger question is why this price increase is happening right now. One possible explanation points to concerns about the upcoming hurdle event for Bitcoin, where a looming chain split on August 1st has some people concerned. It is possible a chain split could hurt Bitcoin’s market position and another cryptocurrency may overtake it, especially with the market share of Ethereum soaring and poised to overtake Bitcoin (at the current pace of growh) in months.

It could also merely be another false breakout: there have been several LTC price rises over the past few months which never lasted long, even as BTC and ETH continued to soar. That said, the Litecoin community is delighted by today's price increase. Things have been looking better for Litecoin, ever since it enabled Segregated Witnessand Charlie Lee left Coinbase to focus on the digital silver. To be sure, with a market cap of "only" $2.5 billion (4th behind BTC, ETH and Ripple), the altcoin has a long way to go before catching up with Bitcoin at just under $44 billion.

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Adarsh Patel 3 years ago Contributor's comment

The recent "flash crash" has scared a lot of investors from cryptocurrency. Yet, I feel as if this crash was nothing more than another bump in the way of this sector's growth. What do you think about this?

Chee Hin Teh 3 years ago Member's comment

Thanks Tyler for sharing