Daily Litecoin News Update
The Koreans are rejoicing and so is the rest of the crypto-world. The air of uncertainty around the ban is finally dissipating. Investors are feeling reinvigorated and cryptocurrencies are once again out of the red zone.
This may have been one of the shortest crashes in the history of all crashes. Just a week ago, the sentiment was extremely dim. Cryptocurrency prices kept tumbling for three consecutive days as sellers continued to dominate the space.
For reference, cryptocurrency prices crashed after the South Korean Minister of Justice called for a complete ban on cryptocurrency exchanges.
Today, a week later, it’s been confirmed that banning these exchanges is “not realistically possible.” Here’s what the Chairman of South Korea’s Fair Trade Commission has to say:
“Based on electronic commerce law, the government does not have the authority to close down cryptocurrency trading platforms.”
(Source: “‘Impossible’ to Shut Down Cryptocurrency Exchanges, Govt. Lacks Authority: Korea’s Fair Trade Chief,” CryptoCoinNews, January 18, 2017.)
Great. So, this is the umpteenth time the South Korean government has caused a stir in the markets just by dilly-dallying on the issue.
Anyhow, we’re now seeing a 180-degree turn in investor spirits. The price of nearly every cryptocurrency is up in the double digits. Litecoin is up more than 24% at the time of writing.
Those who sold through the crash must be kicking themselves right now. Mind you, we had repeatedly warned against it.
Chart courtesy of TradingView.com
It’s heartbreaking for us analysts to watch our followers losing. Some of the investors have still not learned the one basic rule of the crypto trade. That is, to hold on for dear life (HODL). Those who heeded our advice to HODL sat tight and are now in the safe zone.Mind you, the South Korean ban would not have changed anything about Litecoin. Litecoin would have fundamentally remained the same digital currency vying to fill in the gaps left by Bitcoin.
It would have continued to attract more and more users for being the cheaper and faster substitute for Bitcoin. It would have remained on track to become the “payments coin” for the digital world.
Slowly, but surely, Litecoin would have made it up there. Those beliefs should have motivated disciplined investors to HODL their coins through the momentary market turmoil.
The reason why I’m reiterating the same advice again is to remind investors that, should something like this happen again (which it will, considering the South Korean government’s weak track record), investors should not make hasty, irrational decisions.
We held on to our LTC price target of $400.00 through the crash. There’s no reason for us to change our Litecoin price forecast now that the markets are recovering. We remain bullish and remind investors not to lose their nerves through market dips.