Litecoin prices have fallen more than 30% from their all-time high, pushing lower as the alternative protocol asset succumbs to numerous tailwinds.
The price of Litecoin fell to as little as $63.83 today, according to CoinmarketCap.
At this value, the cryptocurrency was trading roughly 30.7% lower than the all-time high of $92.07 it reached on September 2.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
While the digital currency’s price declined lately, it did so after generating some blockbuster returns.
By the time Litecoin prices reached record levels earlier this month, they had climbed more than 2,000% year-to-date (YTD).
Litecoin Outperforms Bitcoin
These sharp price increases have caused Litecoin, which has been described as the silver to Bitcoin’s gold, to appreciate far more than its digital sibling.
It is worth noting that while Bitcoin prices have surpassed $5,000 this year, they have climbed far less than Litecoin.
As for why Litecoin prices dropped this week after generating such impressive returns, analysts pointed to two major factors.
Some analysts identified China’s recent crackdown on initial coin offerings (ICOs) as being a major cause of the recent drop in Litecoin prices.
Brad Chun, chief investment officer of Shuttle Fund Advisor, was in this particular camp.
“Litecoin is largely dominated by Chinese investors,” he asserted. “China regulatory risk is causing an extra impact on widely held Chinese dominated cryptocurrencies.”
The news that came out of China prompted a sell-off in Bitcoin and Ether, the top two cryptocurrencies by market capitalization (market cap), and this in turn caused the value of digital currencies such as Litecoin to fall in value, said Lucas Geiger, founder and CEO of Wireline.
Cryptocurrencies’ total market cap fell below the $150 billion mark today, dropping to as little as $146.5 billion, CoinMarketCap figures show.
Follow The Leader
As the broader crypto market lost value, Litecoin simply followed this trend lower, according to Tim Enneking, managing director of Crypto Asset Management.
“Litecoin is rarely the leader in price movements and is now following the general trend.”