What is LTC/USD?
LTC/USD is a cryptocurrency trading pair symbol used in the world of financial markets. It represents the exchange rate or price of the Litecoin (LTC) cryptocurrency quoted in US dollars (USD).
Litecoin was created in October 2011 by Charlie Lee, a former Google engineer. He designed it as a "lite" version of Bitcoin, aiming to provide faster transaction confirmation times and lower fees. It operates on a decentralised blockchain and is used for various digital transactions and as a store of value, like Bitcoin.
Litecoin has a faster block generation time compared to Bitcoin. Blocks are generated every 2.5 minutes, while Bitcoin takes about 10 minutes per block. This results in faster confirmation times for transactions.
LTC/USD historical performance
Even compared to bitcoin, the price performance of LTC has been incredibly volatile. In December 2017 and May 2021, it reached as high as $375 and over $400, respectively, before falling to the low $20s in December 2018 and March 2020. The region in the low $60s has frequently served as a support and control zone. Nearly 90% of its maximum supply of 84 million is already in circulation.
What affects the price of LTC/USD?
Just like many altcoins, Litecoin’s price is influenced by Bitcoin (BTC) price movements. Litecoin is often referred to as "silver" to Bitcoin's "gold" because it shares many similarities with Bitcoin. Changes in the price and sentiment surrounding Bitcoin can have a ripple effect on Litecoin and the wider cryptocurrency market.
The level of adoption and usage of Litecoin's rivals, such as Ripple (XRP) and Ethereum (ETH), can affect its price. If a competitor achieves widespread adoption and usage for specific applications or use cases, it may diminish demand for Litecoin in those areas, lowering its price.
Regulatory changes or actions against Litecoin's competitors can have indirect effects on Litecoin's price. If a competitor faces regulatory challenges or bans, it might deter investors from the entire cryptocurrency market, affecting Litecoin and other cryptocurrencies' prices.
Broader macroeconomic factors, such as global economic conditions, inflation, and monetary policy changes, can impact the entire cryptocurrency market, including Litecoin and its competitors.
What to watch out for when trading LTC/USD?
- Central Bank decisions, such as those made by the US Federal Reserve regarding interest rates.
- Inflation Data as high or unexpected inflation can lead investors to seek alternative assets like cryptocurrencies as a hedge against currency devaluation. Monitoring inflation data releases can provide insights into potential demand for Litecoin.
- Unemployment and Labour Market Data Economic indicators related to employment and jobless claims can impact investor confidence and consumer spending, which can indirectly affect the cryptocurrency market, including Litecoin.
- Bitcoin price movements.