Bitcoin’s $23,800 rally sparked heavy rallies in big-cap altcoins such as Litecoin and Dogecoin.
LTC and DOGE are surging a lot as BTC battles to remain over 23,8k dollars. Lots of experts claim that the rise in big-cap altcoins is related to Bitcoin’s market activity, and historical evidence shows that both appear to shift in tandem as BTC moves through the positive and negative cycles.
As altcoins continue to display signals of a new rush, traders are now optimistic more than ever about the power of the BTC-like rush.
Through the month, altcoins stagnated against BTC, especially as the popular digital coin had some struggles to leave the USD18k to USD19,4k scope, but that was all in a low-volume setting.
The value of the cryptocurrency market was diminishing then, as BTC still refused a USD19,4k. So, much of the amount went to Bitcoin, and the altcoin marketplace was momentarily robbed of trading activities.
Bitcoin’s break of over $20,000 has re-launched curiosity in Litecoin and Dogecoin
As it usually happens, after a big Bitcoin rally, the altcoins that existed between 2011 and 2014 appear to grow. Such cryptos are Litecoin, Dogecoin, and Ripple.
Volume is one of the main factors for such an altcoin rush. Traders like to release altcoins, leading the volume to jump up for a short time and fuel-intensive volatility.
Because such cryptos have particular historical significance, when the rally begins, their momentum normally will go on more than the one for other unknown, lower-cap alternative coins.
LTC, for example, has increased by more than 57 percent in the last seven days. During the same time, BTC went up by 34 percent, even with reaching and going over $23,8k on large exchanges.
One optimistic trend analysts saw is that alternative coins do not see excessive instability as in 2017. A thing that didn’t occur on this surge was seeing traders panic dump altcoins every time Bitcoin shifted 5 percent. Altcoins in 2017 were -25% on a four percent Bitcoin shift. Tether and the stables didn’t really exist, so it was a choice between Bitcoin and altcoins.
Are the fundamentals behind the latest upsurge?
Litecoin isn’t automatically ‘digital silver’ in the sense that BTC can be crowned ‘gold’ among cryptos.
Since being launched, the main claim for LTC has been that it might behave like silver if BTC becomes as coveted like gold. If you’re new to cryptocurrencies, purchased Bitcoin, and you’re wondering which crypto asset is acting as the silver to Bitcoin. This isn’t Litecoin – it’s Ethereum. One could say that there are precious cryptocurrencies like Bitcoin and industrial ones like Ethereum. Litecoin is neither of the two.
Litecoin has some robust fundamental characteristics that may contribute to an increase in the marketplace. For example, the Litecoin crew is allowing MimbleWimble, a privacy service originally developed for BTC.
But such basic factors aren’t enough to drive a 57 percent rally in one week. The main cause behind the sudden rally of big-cap altcoins is probably a volume play of high-net-value investors and traders trying to get some quick cash following the Bitcoin rally.