Today cryptocurrency investors saw a bit of a curveball as Ethereum and Litecoin saw huge gains and Bitcoin slinked back into the $16k range for a minute until popping back up to ~$17,200 where it sits now. As of this post being written Ethereum is up 26% at $642 and Litecoin is up close to 40% at $345.
So you probably haven’t been following Litecoin too much as Bitcoin has dominated the news lately, but just to put things in perspective, it was sitting at $95 last week at this time. Yes, that means if went from $95 to $345 in a week, a 219.4% gain in seven days.
(Chart source – World Coin Index)
I invested in both Litecoin and Ethereum myself a few months ago and pretty much forgot about it with all the insanity surrounding Bitcoin’s incredibly growth path…now I wish I bought even more. Of course, just like with Bitcoin’s latest run, investors around the world are kicking themselves for not putting more money into crypto. It’s somewhat painful to watch as an investor since all of this is almost completely unpredictable yet if you put a few thousand dollars into any of these three cryptocurrencies a year ago you would have made a pretty life-changing amount of money.
Okay, I digress, let’s get back to what happened today. So today was a weird one because Bitcoin dipped down 0.36% and into the sixteen thousand range while both Ethereum and Litecoin had one of their best days of the year. So what happened?
Well this is what some investors were predicting. With Bitcoin at it’s all time high, investors seem to be starting to move their profits into alternative cryptocurrencies looking to get on another cryptocurrency rocketship. Since Ethereum and Litecoin are two of the most well-known and established alternative cryptocurrencies it’s no surprise that these are seeing so much activity.
This might just be one of the first cryptocurrency moves that isn’t too hard to explain, put simply:
“Investors are taking profits in Bitcoin and re-allocating to Ethereum & Litecoin.” (Source – SeekingAlpha)
The question now is – if you missed the Bitcoin train is now the time to jump into Ethereum and Litecoin? Given that we’ve seen share interest and hype take Bitcoin to the moon, could the same happen with alternative crypocurrencies?
Here’s my two cents. If a ton of people made a fortune off of Bitcoin (we can check that box, it happened), and some meaningful percentage of these people put their profits into Ethereum and Litecoin, these two cryptocurrencies are going to keep going up. At the same time, it’s hard for me to put my money where my mouth is since like so many investors, I’m concerned about buying more of either of these at their peak.
Still, after seeing what Bitcoin just went through, who’s to say this can’t happen again, and again, and again. At the same time, that famous saying, “what goes up must come down” is starting to feel like it could make a whole lot of sense just about any day now. What do you think? Is this just the beginning of a monumental run for Ethereum and Litecoin or is this the top for all three currencies are will smart investors cash out now at what might just be the top?
What do you think? Comment and let your voice be heard!