Almost all cryptocurrencies of the top 50 show a drop and Litecoin is no exception. Even amid the good news continues to drop.
The correction has now entered its fourth day and more and more people are wondering what is happening?
Of course, when the evaluation of a particular cryptocurrency must take into account its features and background, but there are two events that affected the entire market. Affected, unfortunately, negatively.
First, last week, three of the largest cryptocurrency exchanges – Binance, Bittrex and Bitfinex has disabled registration of new users.
Many of those who only dipped into the world of cryptocurrencies prefer to buy on the exchanges. And the largest of them are considered the most secure. Such a move by the major exchanges in fact cut off many potential investors and their capital, they can’t register and can’t buy cryptocurrency.
Other exchanges such as Kraken and Poloniex, also warned that the time of checking accounts, new users will significantly increase due to the fact that they just do not have time to process all applications.
The second reason is the exclusion from CoinMarketCap data with the largest South Korean cryptocurrency exchanges.
Almost all cryptocurrencies, including Litecoin, are traded on the Korean stock exchanges at prices greatly superior to the world.
For example, the average price of LTC at the time of publication of this article is in the area of $ 240, while the price of Litecoin on Bithumb – $ 313.
See also – Prediction: what will happen to the price of Litecoin in 2018?
Thus, when CoinMarketCap stopped to consider the data of these exchanges had the impression that the average price of the cryptocurrency fell. Aggravated the situation and the fact that CoinMarketCap has done this without any prior warning. This led to the fact that many investors, to understand the true causes of what is happening began to merge their positions.
So, on the one hand we observe the emergence of obstacles in the way of new investors who only want to go to the market, and on the other panicked old players.
The rest is the basics of economic theory. When sellers, and buyers scarce, the price goes down.
Fortunately, these phenomena have no relation to the underlying technologies that make use of the cryptocurrencies, including Litecoin. So, it’s just a temporary market anomaly that is unlikely to last long.