Litecoin has drawn a lot of attention since the June lows with multiple outstanding rallies. Overall it's now up 183% since last years june lows. But just recently it is up 60% over a span of only 2 weeks with a +28% day a few days ago.

Very interesting has been the LTC/BTC ratio during the bear market. Some that have paid attention to the alt coin market during all the blood last year have probably noticed as well that Litecoin usually diddn't even fall close as much as majority of the alt coins. And on green days it has been still performing well. While almost all top crypto bled against Bitcoin, Litecoin kept holding the level or went up. Clear sign of smart money accumulation.

There are multiple reasons why bigger players have accumulated Litecoin during this bear market and the most obvious one is quite simple :

it survived in the past. You see, in Crypto you never know what alt coin will make it out of the bear market. In fact since 2017 only 41 assets have truly outperformed Bitcoin to this day.

So beside Litecoin being a Crypto Dinosaur it also has the advantage of having a high amount of adoptions, being known as "the crypto Silver" when people refered to Bitcoin as the "digital gold".Currently it is one of the most popular crypto adopted as payment next to Bitcoin and Ethereum and steadily on a rise.

Litecoin had been in a downtrend since forever in crypto terms. If you look far back to 2014 you can see how it was always in a decline against Bitcoin. The chart makes it also quite visible how just during this bear market it has gained momentum again. Combine this with the Adoption factor it's also an investment into future purchasing power which is very underappreciated by the crypto community. If major stores accept Litecoin and you accumulate it now cheap, you basically can use it to pay for goods in the long run when price rise again. Unlike the Fiat that keeps losing purchasing power overtime.

Litecoin used to be always at the top. An OG that survived multiple bear markets. Back then the top crypto were almost always looking like this through the years and rarely changed:

One of Litecoins biggest and impactful upgrades happened pretty much peak bear market. On the 19th May 2022 MWEB has activated, an upgrade will enable senders of LTC to hide their address and the amount of crypto they transfer, similarly to the way privacy coins Monero and Zcash operate. I'm not getting much into the topic here there are plenty of great sources out there but it had almost no price impact back then. Most likely because the average Crypto fan diddn't really care that much about it, about Litecoin nor investing in an alt coin during peak bear market.

The Next Litecoin Halving Event will happen on the 2nd August 2023. The first Litecoin halving date was in 2015 and the last Litecoin halving date was in 2019. This Litecoin halving event will mark the third halving in Litecoin's history since its launch in 2011. Over the last years ahead of the halving Litecoin always performed very well almost similar to now against Bitcoin. Another reason for smart money to accumulate Litecoin over the last year.

Another good reason for the recent price action is the huge regulation Drama that hit the crypto markets. Some were declared a security and the general sentiment turned towards uncertainity what exactly the "unregistered security" label could mean and impact their holdings.

Gary Gensler himself said a longer time ago that Litecoin, Bitcoin & Bitcoin cash are not securities. Because

"Bitcoin came into existence as mining began as an incentive in validating the distributed platform, with no initial token offering or pre-mined coins.

Litecoin and Bitcoin Cash, both forks off of Bitcoin, do not appear to trigger the Howey Test either."

Additionally it was also deemed a commodity in a CFTC lawsuit filing against Binance just recently.

And obviously as many rallies in the free market Litecoin Pump is not a coincidence. During peak illiqudiity, low volume it is very likely that the smart money already accumulated a large bag cheap over the last year pumped up the prices without heavily increasing their average buy price.

Visible on the chart is how low the volume overall on Litecoin always was. Plenty of time for smart money to accumulate without noticing, not having a large price impact and there was also barely any trading interest in Litecoin over the last year. Until in late november during the first bigger rally on Litecoin the Open Interest really started going up. Since then it almost tripled to this day. Traders jumped in, interest increased, money came in, the rallies started and Litecoin was climbing up the Crypto ladder.

Additionally, the largest short liquidation happened in the recent spike for litecoin since 2021.

That's really impressive considering the general illiqudiity & low interest in the alt coin market. This was another reason to fuel the ongoing climb. Now everyone talks about it again, it's back in the top 10 and people are very interested what will happen next in ~30 days with the halving. It's safe to say the short squeeze and other rallies were fueled by some larger entities knowing very well the underdog they've accumulated for cheap ~$50-$70 over the last year has a good chance to catch some momentum right now.

The traders interest based on the chart is currently as high as during peak bull run november 2021 so you can most likely expect equally volatility happening over the next weeks as you've seen recently.

Hope you enjoyed reading this post and I hope it'll help you understand the reasons behind Litecoin's price action recently. I'll do Bitcoin cash next very soon