Topic: LTC and BTC exchange rate connection? (Read 950 times)
one word. BOTS
The interesting question for me is what will happen as more gfx card miners are driven to ltc by the arrival of asics in btc mining. A certain proportion of those miners will be cashing out their profits which you would expect to push ltc down relative to btc as it is comparatively illiquid.
Often difficulty and price are correlated. If LTC difficulty continues its massive rise (GPU BTC miners seeking a way to keep mining by switching to LTC) it will either require a continued rise in price or many miners will find themselves in an unprofitable situation. That's not to say that there couldn't be a situation where diff is high and prices are low. From what I understand in the fall of 2011 there was that kind of situation with BTC where difficulty was still coming down but prices hit something like $2.50. A lot of people got out. Barring a situation like that, perhaps we'll see price and diff continue their ascent. Afterall, I think many people like the features of LTC and would like to see an alternative to BTC.
The interesting question for me is what will happen as more gfx card miners are driven to ltc by the arrival of asics in btc mining. A certain proportion of those miners will be cashing out their profits which you would expect to push ltc down relative to btc as it is comparatively illiquid.
I think, it's just all about the trust in concept of digital currency in general. When people see the most popular one is falling they distrust the others and sell them. As market is driven by speculators and wanna-be-millionaires who believe the BTC will always keep rising together with LTC and other ones, such connection is no surprise.
I think the ratio of btc to ltc means more..... it stays in the 2.0% - 2.8% range but i dont know why it fluctuates
I can understand why it would fluctuate. The liquidity of each market is very different, so changes in one don't necessarily reflect in the other, or people might exchange one for the other to make a profit. But I still wonder why the range is so close. What dynamics are at work that keep them so closely tied?
I think the ratio of btc to ltc means more..... it stays in the 2.0% - 2.8% range but i dont know why it fluctuates
I've been watching LTC and BTC rise and fall together (not always of course). The connection between the two seems quite strong. Does anyone have a explanation for why they seem so well connected as compared to other alt-coins? Is there any reason why LTC and BTC couldn't strongly diverge in opposite directions?
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