Considering its many similarities to bitcoin, it shouldn’t come as a surprise that the factors affecting litecoin’s price are fairly similar to those for the world’s first cryptocurrency.
However, there are some unique things to watch out for as well:
Many point to litecoin’s wider supply as a key reason for its lower price point than bitcoin. Despite launching two years later, there are far more litecoins available on the market – and faster transactions ensure that supply remains fluid.
Negative headlines surrounding litecoin – or negative headlines surrounding cryptocurrencies in general – will tend to play out on its price in a big way.
LTC’s value is entirely down to its public perception, which makes it even more dependent on favourable news.
People may claim that litecoin has many benefits over bitcoin as a payment solution, but until it is accepted by businesses across the globe that will remain an unsubstantiated claim. So a major company adopting the cryptocurrency could see its price spike.