Now that Bitcoin (BTC) surpassed its all-time high of $20,000 in 2020, the question is whether Litecoin price could reach $1,000 in 2021. The 5th largest crypto in terms of market valuation has reached a high of $140 in 2020. However, there are some analysts that consider that it might be possible for Litecoin to surpass $1,000 in 2021.
Disclaimer: this post should not be considered investment advice. This is only for educational purposes only. Never invest more than what you are able to lose and always ask for information to your professional financial advisors. We are not financial advisors.
Litecoin has been growing over the last year until it reached $140 per coin. This allowed the digital currency to even surpass XRP for a brief period of time as the 4th largest virtual currency in the market.
But the main question remains on whether it is possible for Litecoin price to surpass $1,000 in 2021. This is something that is not clear and many things could happen. But there are some analysts that consider it might be possible for LTC to reach a considerably high level in the coming months.
An anonymous cryptocurrency analyst on Twitter called Master, considers that Litecoin is experiencing its four-year cycle, This could push LTC towards new highs and surpass $1,000 and even $2,000. However, this is not confirmed and might not happen at all.
Virtual currencies are very volatile and could simply fall at any moment. This is why you should be very careful about investing in cryptocurrencies. For example, XRP has fallen from $0.70 to $0.175 in just days after Ripple has been accused of selling unregistered securities to the market.
As per the analyst, Litecoin has experienced two 4-year price cycles that allowed the digital currency to reach new highs. The coin has reached the top of these cycles when it reached its peak in November 2013 and in December 2017.
The analysis shows that the next four years cycle could continue in 2021 and 2022. By the end of 2021, it might be possible for LTC to reach a price between $2,500 and $6,000. Following this analysis Litecoin could still move by 1,600% in the coming weeks. That’s certainly a lot.
Nevertheless, we should always be cautious about the crypto market. The cycles might not repeat themselves in the future and Litecoin could be traded close to its current prices. Despite that, there is a larger demand for cryptocurrencies and Bitcoin is showing this by surpassing $29,000.
The cryptocurrency market has been expanding throughout 2021. There are many reasons behind this increase in the total market value of cryptocurrencies. One of the main reasons is related to how countries all over the world decided to fight against the COVID-19 pandemic.
The FED, the European Central Bank (ECB) and other countries have printed large amounts of money. This has inflated the price of the stock market and of other assets. Thus, a large number of investors decided to place their funds in the cryptocurrency market.
Bitcoin has certainly been one of the best performing cryptocurrencies in 2020. The virtual currency reached an all-time high of $29,300 and it was able to close the year at its highest price ever registered. Its dominance has also skyrocketed to above 70%, which shows that investors are closely following Bitcoin rather than smaller cap currencies.
Furthermore, a large number of companies decided to invest in Bitcoin. Square, MassMutual, Ruffler and MicroStrategy are just some of the firms that invested in BTC. The goal is to also use Bitcoin as an insurance policy against currencies that are devaluating on a regular basis.
Meanwhile, Litecoin price could continue growing in 2021. As we have mentioned before, there is a possibility for this virtual currency to continue moving higher. If the cycles repeat themselves, it might be possible for it to reach not only $1,000 but even higher prices.
It is worth taking into consideration that virtual currencies are very volatile and a new bear market could eventually take place in the coming years. Despite that, most of the analysts remain bullish on bitcoin and on the entire crypto market. Litecoin being part of it would allow LTC to continue moving higher in 2021 and eventually reach new highs this year.
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