Why the Litecoin (LTC) price has fallen 13% this week

After a reasonably positive start to the week the Litecoin (LTC) price has suddenly taken a real turn.

At the time of writing Litecoin is down 5.5% over the last 24 hours to US$186.85 per coin according to Coin Market Cap.

This latest decline means the popular altcoin has fallen around 13.5% since peaking at US$215.73 during trade on Monday and reduces its market capitalisation to just under US$10.4 billion.

Despite the drop it still remains the world’s fifth-largest cryptocurrency ahead of NEO (NEO) with its market capitalisation of US$6.5 billion and behind Bitcoin Cash (BCH) which has a market capitalisation of US$18.6 billion.

Why has it fallen sharply this week?

Cryptocurrency markets have been hit hard over the last few days for a number of reasons.

One is over concerns that lower trading volumes and Google searches for “bitcoin” are a sign that interest is dying down and the boom is over.

Then overnight rumours that the Binance cryptocurrency exchange had been hacked weighed heavily on sentiment. After which, news that the U.S. Securities and Exchange Commission will soon require digital asset exchanges to register with the agency added to the negative sentiment.

Traders appear to be interpreting the latter development as a sign that regulations could tighten and restrict future trading.

Finally, one issue specific to Litecoin is the launch of the LitePay payment technology. The technology was launched in February but is not yet fully functional.

This was seen as a way to bring Litecoin into the mainstream, so its delay appears to have Litecoin fans a little concerned.

Should you buy the Litecoin dip?

If sentiment shifts positively again by the end of the week then I have little doubt Litecoin could be heading above the US$200 mark again. But if sentiment remains negative it could drag prices even lower.

For this reason, I would suggest traders stay clear of Litecoin for the time being.

Don’t Buy Litecoin Or A SINGLE Cryptocurrency Until You Read This

While conflict overseas is all media talking-heads seem to mention these days, the billionaire founder of Tesla is losing sleep over what he sees as a far bigger threat.

Elon Musk Warns: This has “vastly more risk than North Korea”

If you missed your opportunity to get in on Google, Microsoft, or Amazon in their early days, don't let it happen again. This emerging technology trend could offer a second chance for anyone who wishes they took part in these millionaire-maker stocks.

Click here to discover more!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.