Litecoin (CRYPTO: LTC) is trading lower by 4.4% to $98.68 Wednesday afternoon. Shares of several altcoins are trading lower amid Bitcoin falling some 6% over the trailing week.
Bitcoin holds the position of the largest and most influential cryptocurrency, dictating market trends due to its high market capitalization and trading volume. Price fluctuations in Bitcoin can affect investor confidence in the broader cryptocurrency market, potentially triggering sell-offs in other cryptocurrencies like Litecoin.
See Also: Bitcoin ETFs Traded $111B In March: 2 New ETFs Could Mean The Action Gets Even Wilder
Litecoin is commonly compared to Bitcoin as “silver” to Bitcoin’s “gold” due to similar technical features but with some distinctions like faster block generation and a different hashing algorithm. However, Litecoin’s value is closely linked to Bitcoin’s performance. If Bitcoin’s price drops significantly, investors might perceive Litecoin as less valuable, resulting in reduced demand and price.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!