When, at the beginning of July Litecoin recorded a drop in the vicinity of 0.0107 (LTC/BTC chart) reaching levels recorded last time at the end of November 2013, many investors prophesied the end of virtual currency and recommended escape from the market. LTC was, however, able to bounce up, recover some losses and move in consolidation for almost a month. In recent days, however, we witnessed another, even deeper slump (in the vicinity of 0.0093), which brought the price very close to the historical lows (the lowest levels recorded in the history of cryptocurrency).
The latest decline – on such a large scale – very quickly turned into market frustration and anger (especially in the case of leveraged positions). Fear appears on cryptocurrency investors faces which on larger scale could lead even to strong sales
Looking for reasons of Litecoin continuous slippage (since the end of 2013), we should pay attention to the new coins amount which are mined every day. There is around new 28800 LTC per day, which turns into an annual inflation rate of about 30%. Diggers simply abandon their coins which corresponds with a decrease in the value of money that can be compared to the hyperinflationary economy.
Investors are asking themselves two questions – whether LTC will be able to rebound again and return to the vicinity of historical, local peaks and when the price will drop below historical lows? This second scenario puts even greater pressure on Litecoin, which brings sales expansion.
