After a very rough weekend for all cryptocurrencies, it appears things are slowly heading in the right direction once again. The Bitcoin price is still a lot lower than most people would like, but all top cryptocurrencies are recovering at this time. Litecoin in particular is showing some positive momentum, as its value is heading back to the US$65 mark as we speak.
Litecoin Price Rebounds Nicely
Given all of the cryptocurrency market volatility over the past few weeks, everyone will agree things haven’t been looking all that great. That being said, these markets often rebound pretty quickly regardless of which news has been rocking confidence. With China effectively cracking down on ICOs and allegedly cracking down on exchanges – which is still not officially confirmed – there is a lot of volatility ahead to take into account.
For the average Litecoin holder, there is no reason to be concerned whatsoever. In fact, it seems the Litecoin price is rebounding a lot quicker than most people would have expected at this point. With an 8.42% gain over the past 24 hours, the Litecoin price is heading back toward the US$65 mark as we speak. It is worth mentioning that Litecoin is gaining value in both the USD and BTC markets alike, which is pretty intriguing. This rebound has been aided by US$508.5 million in 24-hour trading volume as well.
Considering how the Litecoin price is often determined by the Chinese exchanges, it is interesting to note whether or not the Chinese are still interested in trading LTC. After all, if the recent news is correct, the government will soon prohibit exchanges from dealing with cryptocurrencies altogether. That would also mean the Litecoin trading volume would dry up pretty quickly. Unsurprisingly, the Chinese exchanges are still driving the Litecoin trading volume as we speak.
More specifically, OKCoin leads the markets with 24.27% of all Litecoin trades. Huobi is in second place with 19.19%. CHBTC and Huobi are also in the top 15 exchanges ranked by trading volume. This indicates that there will most likely not be a ban on exchanges dealing with cryptocurrencies anytime soon. It is true the Chinese platforms trade Litecoin at a slightly lower value than the rest of the world – more specifically, a discount of US$5 compared to Western exchanges.
All of this information points to how Chinese traders still determine the Litecoin price more than anybody else. Despite trading at a lower market value compared to the rest of the world, its trading volume itself speaks volumes. If there were an impending ban on Chinese exchanges dealing with cryptocurrencies, the Litecoin price would effectively collapse under the weight of Chinese investors liquidating their assets. That has not happened so far, which is not entirely surprising.
It will be interesting to see how the Litecoin price evolves over the coming days and weeks. With the value going up as we speak, the future may not look all that bleak after all for the popular altcoin. There is still a lot of uncertainty across all markets, which will not necessarily subside anytime soon. However, there are signs of positive price momentum which is the only thing that matters right now.