Most coins fix losses – correctionJun 10, 2019
15 of the 16 coins, with a capitalization of more than $1 billion, completed the past week in the “red zone”. The exception was Litecoin (LTC), adding about 2% per week. However, given the fact that only 3 of the remaining 15 coins fell by less than 10%, weak growth in LTC looks like a pretty good result.
TRX, EOS and MIOTA became an outsider of the week, with more than 15% loss per week, including the Asian session on Monday 10 June. It is still difficult to say that bearish sentiment prevails in the market. The current situation looks more like a correction after a rapid growth, which goes into the accumulation phase (consolidation of prices in the range).
Why does Litecoin (LTC) grow?
It is hard to determine the reason nowadays because when LTC grew, there were no critical messages that could provide incredibly strong support. It is also worth noting that the remaining coins from the TOP 10 finished the week, fixing losses. At the same time, almost all traders and crypto enthusiasts celebrate the upcoming halvening. On August 6, the mining remuneration for LTC will be reduced by two times, from 25 LTC to 12.5 LTC per block.
A decrease in remuneration (emission) leads to a reduction in inflation and, as a result, contributes to an increase in the value of an asset.
Trader Luke Martin (@VentureCoinist) expects the LTC / BTC pair to grow further to a target level of 0.0182.
“I was sleeping on the $ LTC halvening being only 60 days away now. Price is up 5% today, breaking out of consolidation. I think it could go higher than the most recent .0182 swing high. ” says Luke Martin on Twitter.
Peter Brandt, cryptocurrency guru, also mentions the potential for strong growth of the LTC / BTC pair.
India against cryptocurrency
Citizens of India are forbidden to interact with cryptocurrencies. Even though India is not on the list of the richest country in the world, but it is the third largest economy in the world in terms of GDP. Thus, severe restrictions are a fundamental bearish factor for the cryptocurrency market.
A draft bill, dubbed “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019,” spells out a preventive measure in the form of 10 years in prison. It is proposed to apply the punishment to persons directly or indirectly connected with mining, storage, sale by transfer, issue and deals involving cryptocurrency.
The draft bill also proposes to charge a fine three times higher than the benefits obtained from interaction with cryptocurrencies and 100% compensation for the damage caused to the state.
Interest in the cryptocurrency market is growing rapidly
The largest cryptocurrency exchanges record the influx of new users, as well as a noticeable increase in attendance. According to SimilarWeb, in May, Binance visited 42 million people while Coinbace had 35 million visitors.
Increased activity to the cryptocurrency market is due to external factors:
- US trade conflicts with China and several other countries increase interest in more confidential methods of payment.
- Uncertainty about Brexit in Britain, the resignation of the Prime Minister, attracts the attention of business and investors to the cryptocurrency market.
It increases the risk of a slowdown in the global economy, which will affect the largest stock indexes in the developed countries of the world. This, in turn, helps to increase interest in cryptocurrencies.