Will Bitcoin Drag Litecoin Down During Every Dip?

The price of Litecoin was looking good, and it hit a month-long high just days ago: but like most of the crypto market it fell off a cliff in the past 48 hours. Although at the time of writing it has recovered to $55.67 and a market cap of $3.24 billion, it’s still some way off its recent $70 peak.

So, what went wrong?

The straightforward answer is: nothing. The surprise is that Litecoin rose to those heady heights, but the correction is in perfect harmony with the remainder of the market. For better of for worse, Litecoin’s performance is both a victim of Bitcoin’s slips, and the beneficiary of its ascendancy.

Diversification, as we’ve highlighted before, is still a myth in the world of cryptocurrency, and the Litecoin price seems inexorably tied to Bitcoin’s value.

Lemmings Rushed To The Cliff

When it slipped beneath $68, the cryptocurrency lemmings hurled themselves into the abyss together and rushed to sell. The Momentum effect works both ways, but Bitcoin’s drop might…