Due to the current COVID-19 global pandemic, as well as many other external factors (such as the upcoming United States presidential transfer of power), financial markets all over the world are currently extremely flexible. As any cryptocurrency investor worth their salt knows, the value of cryptocurrency can change overnight, and a lot of chaos in the world can have adverse and often unpredictable effects on this.
For example, while you would expect cryptocurrencies to be reeling from the coronavirus pandemic, Bitcoin is at an all-time high, as are many other popular currencies. Litecoin, however, is not doing as well for a few reasons. Firstly, using data obtained from a Litecoin price analysis today, we can discern that after reaching its all-time high of $360 USD back in 2017, Litecoin halved and has never really grown a noteworthy amount since then. Then, why would Litecoin predictions be marking the mainstream cryptocurrency as having big potential for 2021 and beyond? Continue reading to learn about our LTC prediction and get an extensive review of LTC’s price history. What could be influencing Litecoin price forecast services to be marking LTC as a hot commodity for any cryptocurrency investor?
What Influences Litecoin Price Prediction?
Litecoin, like all crypto, is influenced by global events, the fiscal markets, and investor confidence in cryptocurrencies as a whole. For example, when the entire cryptocurrency marketed plummeted in March of 2020, investor confidence was at an all-time low. This was due to the lack of information surrounding the severity of COVID-19 and the unknown effects it would cause on the world. However, as stability held, the value of LTC and all cryptocurrencies have risen steadily over the past nine months, resulting in many tokens reaching and breaking record prices.
Litecoin price predictions at the onset of 2020 (and before the general worry about COVID-19)maintained a steady rise of about 10-20% over the course of the year. However, as we now know, LTC has far exceeded those expectations, more than tripling from January to finish off 2020. Because of the volatility of the crypto market, especially surrounding the low price of LTC and other mainstream altcoins, anyone is able to benefit from the power of crypto. As the values of individual cryptocurrencies continue to grow, the possibilities for investor returns are endless.
Latest News Influencing Litecoin Price Predictions
The LTC price is directly influenced by several factors that are set in stone. For example, the success of other cryptocurrencies directly benefits LTC, as does the fall in their value through day-to-day trade. Still, there are always unforeseeable factors that can change the Litecoin predictions made by experts. For example, some of the recent events that have had a significant effect on the price of Litecoin include the United States 2020 Presidential Election, as well as PayPal, a popular online e-commerce service, announcing that they will soon be accommodating cryptocurrency.
Obviously, PayPal, a service with over 26 million merchants (as per their own website announcing the crypto news), has had an enormous effect on the price of every single cryptocurrency on the market. However, the four largest by value, Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, are currently the only digital currencies that are described on the official PayPal website.
Consequently, LTC price predictions have gone through the roof due to this shocking and bold announcement by PayPal. With the knowledge that cryptocurrency will become mainstream as early as 2021, many investors, especially in North America, are scrambling to get as much crypto as they can. This has led to an obvious rise in the value of every coin available to the public. In fact, many Litecoin forecast sources are predicting that this is not just a bubble that will eventually burst, resulting in a heavy fall in crypto prices, but is actually a reasonable increase due to the ever-present cryptocurrency usages online. As crypto becomes more popular and more mainstream, an increasing number of people will begin to dabble in the art of crypto investing, causing prices to only rise to further heights.
Litecoin’s Past Performance
By looking to the past and seeing how Litecoin has dealt with global events before, we are able to form accurate Litecoin future predictions by judging how the popular cryptocurrency responded to worldwide events. For example, during the United States presidential election of 2016, Litecoin had just been created and was a fledgeling cryptocurrency at that point.
However, just one year after its inception in November of 2016, Litecoin grew from approximately $4 USD to over $60 USD. That is more than a 1000% increase and clearly shows the explosive potential of LTC. Litecoin peaked at around $300 USD in December of 2017 and then fell to hit $50 USD in November of 2018. All of these statistics show that investors should be prepared for a volatile year in 2021 and should closely watch for signs of impending price changes.
Litecoin Prediction for 2021
As mentioned above, the stage is set for a meteoric rise in the price of Litecoin this new year. However, will those expectations actually pan out? One reason this seemingly given fact may not actually come to fruition is due to the resurgence of the coronavirus. Litecoin’s predictions have consequently been all over the place, with differing sources opting to be more optimistic or pessimistic, depending on their views and opinions.
This can present a problem for the average crypto investor, as having conflicting reports and information does not help anyone and only serves to add fuel to the fire that is the coronavirus confusion situation. Therefore, as with any other type of investment, stick to a source and/or plan that you trust and follow through with it to maximize your potential earnings (or savings).
Is Litecoin a Good Investment?
Litecoin, as with any and all cryptocurrencies, should never occupy the biggest spot in your portfolio - unless you feel that you can field the large risk that comes with these types of currency. While the past couple of months have shown that cryptocurrency today can earn fortunate (and smart) investors a lot of money, it can also lead to many enormous losses. Unlike far more stable investments such as long-term bonds, nobody really knows what could Litecoin be worth in 10 years, not even the crypto experts. In fact, the market for cryptocurrencies could become so heavily regulated that it actually crashes and becomes worthless.
On the other hand, crypto has shown very promising potential, and many well-known and extremely reputable companies such as Microsoft, VISA, PayPal, and even NVIDIA have all begun dipping into Bitcoin and other cryptocurrencies. Therefore, Litecoin may become more valuable than we can ever expect in the near future, which makes it a tough decision but an overall worthy investment for those who can field the steep risks involved.