Why is Litecoin not as expensive as Bitcoin (2021 Why Litecoin Can’t Rise)

Why is Litecoin not as expensive as Bitcoin? There are two key reasons: limited supply and slow transaction speed. Another factor is its high range of use.

First, LTC has an inflation rate of 4% (about 0.5% of the global total circulation). Second, despite the stable price and growing demand, BTC’s price is still more than 70% lower than its historical peak in December 2017. However, considering the recent surge in demand for LTC and the network security threats related to cryptocurrencies, LTC will certainly receive attention.

Why Litecoin Can’t Rise in 2021

Editor’s note: This article is from the Fenghuolun community (ID: FHBT18), written by Peipei and authorized for reproduction by Odaily Star Daily.

One recent bearish market sentiment is that Litecoin saw a price increase of over 200% in 2020, but this does not guarantee its continued price rise. At present, there is still a possibility of a correction, as LTC has not been very profitable this year, with a rise of less than 50%. However, if we consider the data from the end of last year, this year’s market can almost be tracked at a “doubled” speed. As for Bitcoin, Ethereum is the most promising this year, with Ethereum’s market value approaching a trillion dollars, while the current value of Ethereum is only around 10 billion dollars. If we compare Bitcoin and Ethereum next year, we will see that Ethereum’s trading volume in the first two months almost exceeded that of Bitcoin. So there may be some good news for cryptocurrencies. For example, yesterday Grayscale announced that after the rejection of the application for the Bitcoin Trust Fund, Grayscale’s Bitcoin Trust Fund has once again entered the market; tonight, according to Bloomberg, the U.S. Securities and Exchange Commission is considering whether to approve Bitcoin Exchange Traded Funds (ETFs). According to CoinMarketCap data, as of the end of September, Grayscale holds nearly 70 types of digital asset products (worth over 3 billion US dollars), including BTC, ETH, XRP, BCH, etc., which account for about 40-60% of the entire digital asset market. In addition, Grayscale subsidiaries such as Gemini Trust and BitGo have been increasing their holdings of Bitcoin in recent years. However, in the past few days, there has been a slight decline in Bitcoin prices due to continuous influx of institutional buyers. Although many people also believe that Bitcoin may have an independent market trend in the near future, it currently seems there is still some room for adjustment. Of course, this is also related to the opinions of many analysts who believe that there will be a space for rebound in the short term. In addition, it is inferred that there is no consensus reached by both bulls and bears in the short term, so this situation can easily change. Finally, it is worth reminding everyone that Bitcoin is currently in an upward channel and will only break below the downward track if there is an obvious trend change. If it is going to strengthen in the future, it needs to pay attention to an important level of 10,200 US dollars, which is the lowest price of 2021. If it cannot break through the $10,000 mark in a short period of time, it is very likely to form a bottom, which is around $11,500. If it can really break through this resistance range, I personally still have a positive view on the development direction of the subsequent market. As for why Bitcoin is so sluggish, I think the main reason lies in some fundamental factors. First of all, the optimism of the fundamentals, long-term investors tend to favor Bitcoin. Secondly, in terms of funds, Bitcoin has a significant influence as an emerging global asset class. Another factor is the improvement of regulatory environment.