The past several days have once again shown that cryptocurrency markets remain incredibly volatile. As David Parker reported, Bitcoin markets experienced flash crashes driving the Bitcoin price as low as $300 on one exchange. This volatility quickly extended to altcoin markets as well. Major players including…
The past several days have once again shown that cryptocurrency markets remain incredibly volatile. As David Parker reported, Bitcoin markets experienced flash crashes driving the Bitcoin price as low as $300 on one exchange. This volatility quickly extended to altcoin markets as well. Major players including Litecoin, Darkcoin, Peercoin, and Ripple all experienced massive blows to their unit prices and market caps. However, the past few days have brought a massive comeback to the altcoin market, and both the Darkcoin price and Litecoin price are leading the charge.
The Litecoin price has recovered from the rapid downswing it experienced on August 17-18. After falling to a 30-day low of .0079 BTC, the Litecoin price rallied back to .011 BTC ($4.04 and $5.64 at the current exchange rate). In the past 24 hours alone, the Litecoin price has increased 18.3%.
The reasons for the price decline are not immediately clear, although it is a safe bet that many traders wanted to buy into Bitcoin while its USD exchange rate was low. As the Bitcoin price increased, altcoin prices began to rise again too.
As CoinMarketCap Litecoin price chart below demonstrates, the Litecoin price has not just recovered from its minor crash–it has rallied to a level higher than before the price-swing began.
The Litecoin price rebound should quell fears about Litecoin’s immediate future, but the coin’s 30-day Litecoin price chart shows that the coin’s struggles are not a recent problem. Even before the crash, the Litecoin price was enduring a prolonged decline. As long-term holders remember, the Litecoin prices exceeded $10 as recently as June. By early July, the Litecoin price had fallen to $7, although a flash crash temporarily dropped it to $2.21. The Litecoin price continued to decline steadily throughout July, until it became more volatile shortly before the crash.
Litecoin was not the only major altcoin whose market cap has fluctuated over the past week. Darkcoin, which has consistently remained among the top 5 cryptocurrencies in terms of total market cap throughout the summer, fell prey to the volatility affecting cryptocurrency markets.
On August 8, the Darkcoin price was .0098 BTC ($5.98). Though far lower than the levels it experienced just prior to the masternode update in May, it was still enough to keep Darkcoin’s market cap among the top 3 or 4 altcoins. However, the Darkcoin price experienced an incredible decline from August 8-18, reaching a floor of just $1.54 USD. The resulting drop in market cap almost pushed Darkcoin out of the top 10.
On August 19, investors began placing buy pressure on DRK exchanges, driving the Darkcoin price back up. The Darkcoin price increased more than 70%, and it continued to increase on August 20. Over the past 24 hours, the Darkcoin price increased 17.8%. Despite this rapid upswing, the Darkcoin price has not returned to pre-crash levels. At present, the Darkcoin price sits at $3.78, placing its market cap 7th, behind Peercoin and BitSharesX (whose price has risen a remarkable 40% in the past 24 hours).
The Litecoin and Darkcoin prices have not fared incredibly well over the past few months. However, they have both proven themselves capable of remaining among Bitcoin’s top contenders even amid investor uncertainty and resulting price drops. Both Litecoin and Darkcoin rank in CoinGecko’s top 10 in overall coin health, so long-term investors should think twice about liquidating their holdings and investing in the next altcoin fad.
The Author does not presently own and Litecoins or Darkcoins.
Last modified: January 10, 2020 2:14 PM UTC