Published on January 28th, 2020 | by Georgi Todorov0
Litecoin Price Prediction – How High Will It Go in 2020?
Litecoin (LTC), is a cryptocurrency used around the world. It’s structured similarly to the more famous Bitcoin (BTC). As with any other cryptocurrency, the value of the coins changes rapidly. Since the value isn’t tied to the performance of a company or a specific physical asset, it can shoot up to incredible heights or slump down to dismal lows.
For this reason, it’s important to follow the ebbs and flows of the LTC market to get a feel for how it goes. If you’re planning to invest in Litecoin or if you’re already holding some Litecoins in your digital wallet, 2020 valuations and predictions could be important to know for your long-term investment strategy.
As of early December 2019, Litecoin has been hovering around $45. It’s part of a downward spiral that’s been going on since mid-June of 2019. This is a typical part of the annual value cycle of LTC, with the coin regularly peaking in mid-year and losing value by the end of the year.
LTC Predictions for 2020
Most of the sources that analyze and follow Litecoin are predicting a continued loss of value in early 2020. Throughout early 2020, LTC is expected to keep going down, potentially mirroring values seen at the beginning of 2019, tanking out at around 25.20 in late December 2018 and 29.89 in January 2019 before picking back up again.
For 2020, the early months should not be used as an indicator of where the currency will go. Litecoin tends to have dips followed by strong growth that peaks in Q2 or Q3. Some sources predict it might peak at $89 in 2020, while others say it could peak as low as $47. The overall feel from recent predictions is that the next 2-3 years may not be huge growth years for the currency. However, most analysts are predicting a strong resurgence in value somewhere around 2021-2023.
Even if 2020 is not a growth year, LTC may still be a driving force in the coin market as cryptocurrencies continue to gain momentum. Despite expectations of relatively poor performance, LTC is still strong in terms of the number of hours invested into mining. This is a good sign for people’s commitment to sticking with the coin.
Some analysts predicted LTC would have a much higher value by the end of 2019 than it currently does, which has put their 2020 predictions off track. At this point, it may be safer to stick with estimates on the lower side, as they are likely to be far more realistic. Higher predictions could still hold true if the interest in or demand for LTC experiences any unexpected jumps later on.
Factors Affecting LTC Prices
Litecoin tends to follow the same ups and downs as Bitcoin. If you compare the value graphs for both coins, Litecoin is never that far separated from Bitcoin. It’s widely considered to be a fork for Bitcoin, since the code for Litecoin is heavily based on Bitcoin code. Because of this, the coins often are affected by the same market forces and owned by similar groups of people.
LTC is a more practical coin than some of the other existing cryptocurrencies. It’s accepted by some businesses around the world as a form of payment for services. Businesses tend to like LTC over BTC because of the faster processing times and smaller variations in price, leading the business to get a higher ROI and customer experience improvements for those paying with it. Depending on the number of businesses and people currently using LTC for payments, the value can increase or decrease.
One of the potential factors for Litecoin’s stagnation recently is the global downturn of cryptocurrencies following Facebook’s announcement for their planned Libra coin. Many cryptocurrencies lost value after Libra was first announced.
In August of 2019, Litecoin experienced its most recent halving, where miners now receive half the number of Litecoins for mining success than they did before. When the next halving will happen is unknown, but when it does occur, we can expect to see the coin values react again. In most cases, traders factor in upcoming halvings before they occur, which we saw happen in 2019 as trading values increased closer to the halving. The next halving is not expected until 2023.
Historical Trends in LTC Value
Since its introduction in 2011, Litecoin has experienced a high level of volatility, though it’s never reached the same heights as Bitcoin. Whereas BTC has exceeded $10,000 in value, LTC peaked at $375.29 in 2017. Since that peak, it hasn’t gotten close to the $300 mark again. However, it’s managed to stay above $20 for years.
Litecoin tends to follow a similar value path as Bitcoin, but it’s never been as volatile. It does experience more dramatic jumps and falls than average investment assets. However, it generally climbs and falls more gradually than some of the more popular cryptocurrencies. On an average day in 2019, LTC experienced variations measured by around $1-5. During larger downturns or upswings, this temporarily changed before leveling out again.
As of December 2019, LTC is the 6th most popular cryptocurrency on the market. Founder Charlie Lee is still heavily involved with the coin, keeping it up-to-date on the latest technologies and making changes to keep innovating.