Litecoin (LTC) is having a very difficult beginning of the year.
With the cost of USD 366 per coin, LTC fell by more than 64% and now the price is around USD 155. Market sentiment is quite negative, and the prospect of short-term regulation by the relevant bodies of the United States virtually eliminates the chances of short term recovery.
Although developments in the markets can be called the meat grinder, they are more fundamental and are related to several currencies at the top level.
Our thesis is relatively simple – the markets do not see opportunities for any fundamental advance. Events that normally lead to an increase in the value of coins, in such situations go unnoticed, so the impact on cost is almost not felt. It can be a good opportunity. Why? Because we see it from the point of view that these ignore the events take place secretly, and that, in the end, when the markets begin to recover, and the mood improves, these events will again influence the cost.
Therefore, the cryptocurrency markets have ignored hit the press news about Litecoin.
The news is that a company called LitePay is going to launch the world’s first technology sale, which will allow retail merchants to accept Litecoin from customers. This technology allows you to exchange Litecoin in real time on paper money (ie the local currency). In this case, the trader will not have to take the risks associated with rate fluctuations. The fee for the use of the service is 1% (compared to 3% or more in the payment terminals (POS) MasterCard, Visa etc.
It is worth noting that the report got into the press thanks to web site Express, so the first statements about the short run (especially considering the fact that the source referred to “insider information”) were pretty questionable.
Shortly after the press statements, the founder of Litecoin Charlie Lee has commented on this article in Tweeter, adding that perhaps the service will be launched in the near future. It is also mentioned in Tweeter about a possible imminent launch of UnoCoin (coins from the list of Litecoin that is available on the exchange), and also announced the opening of the company Litepal that needs to process Litecoin payments.
In other words, people will be much easier to use Litecoin to buy things in the real world, and retailers in retail outlets to accept the cryptocurrency as payment for goods and services.
If the news was leaked to the press a few months ago, we would have seen the rising cost of LTC in anticipation of improving the provision of services that would lead to an increase in demand for this asset.
However, to see what happened really, just look at the graph of prices – the cost of LTC fell by 16% relative to Fiat currency and even dropped a few points compared to BTC over the last day.
But we should recognize that such events will not long go unnoticed.
Once the market sentiment improves, and the markets themselves are beginning to make rational decisions (react to events instead of on the sale of assets, no matter what happens inside), the value of LTC will rise after the appearance of such news and messages.