Wow, I haven't really kept up with the BTC/LTC market in awhile, but checking the charts today pretty much shocked me. Last I remembered it was surging up towards the 12 dollar market and all signs were pointing to bullish. The 365 day chart does not look good...at all.
Is there some particular news that is triggering this massive downward slope? And are any of you guys getting in now, or do you feel we might see another return close to 4 dollars like we saw late last year? I'm soooo tempted...but man, I've already been burned so many times in this altcoin game.
When the threat of scrypt ASICs reared its head earlier this year, there were some calls for LTC to implement a new algo, with many favoring X11.
However, both Charles and Warren were against the idea.
Not long after, commercial scrypt ASICs started to be distributed and their impact began to felt almost immediately.
A short while ago, as LTC's price continue to slide, Charles proposed a merge mining solution with Dogecoin.
But, rumors began to float that
Charles was bribed by Chinese ASIC manufacturers to push the idea, so Dogecoin devs apparently turned him down. This triggered the second major price drop.
So what is in store for LTC now?
I think the price will naturally level off once scrypt ASICs profitability levels are established.
It could be weeks, or months, as people learn to optimize and fine tune scrypt ASIC miners.
Fwiw, Charles made a very interesting comment on Reddit yesterday.
I first heard about Bitcoin when it shot to $30, which was around a $200M marketcap. Then it dropped all the way down to $2 (~$15M marketcap). Litecoin hit $1B and is now ONLY $175M. If you think $175M is dead, then you definitely would have sold when Bitcoin hit $15M. That would have been a disaster!
Would Litecoin price drop more? Maybe
Would it drop a lot more? Possibly
Would it rebound when Bitcoin rebounds? Definitely
Would it rebound a lot more than Bitcoin? Very likely