Litecoin, one of the market’s oldest cryptos, has seen its own share of ups and downs over the years. More often than not, this altcoin has unhesitantly followed Bitcoin’s pre-carved footsteps.
The last couple of days have been quite deterring for Bitcoin and most other large-cap coins. Litecoin wasn’t spared from the wider melancholy either.
Towards the end of November, LTC’s price typically revolved around $220. Post that, however, it embarked on a southbound journey. At the time of this analysis, the altcoin was exchanging hands around $158.
The ‘institutional’ tangent
Well, apart from Bitcoin’s downtrend playing spoilsport, a host of other intertwined factors have collectively put Litecoin in a fix.
To begin with, take the case of Grayscale’s Litecoin Trust itself. LTCN’s share price has massively shrunk of late. It has been trading at a level nowhere close to LTC’s spot market price on crypto-exchanges.
As per data from Grayscale, the Litecoin Classic Trust closed at an underwhelming $15[1] on Friday.
Goes without saying then that share prices are controlled by the basic laws of demand and supply. So, looking at the current malnourished numbers, it wouldn’t be wrong to claim that market participants’ interest with respect to Litecoin is eroding at quite a quick pace.
LTC and LTCN share a high correlation with each other. Their prices have been mirroring each other’s movements for quite some time now. So, if LTCN’s demand shoots up, its share value would inevitably increase. In effect, LTC’s price would end up treading the same path.
Nonetheless, given the current deficient demand, the odds of the aforementioned scenario materializing seem to be far from reality.
Source: TradingView
