the answer to the question on first post is this (mainly aimed at the noobs to grasp how prices change)
although you do not see litecoins used in grocery stores or domino's pizza in your town. they do have a value and this value is the cost of production. EG electricity and hardware.
miners want to ensure if they are going to mine something they can sell it to atleast break even or to profit. so the current cost of production puts LTC at 6cents due to current difficulty and hardware costs and a few other considerations.
the next thing to take into account is the direct BTC -> LTC price which after people have arbitraged the price swings due to costs changing, the direct crypto to crypto prices level out to a middle ground of the dollar values of each crypto's.
ill make it easier to understand with the image below.
take table 1
if i had 1000LTC and sold them for $0.0612, id get $61.20. if i then bought BTC id be given 4.955BTC and if i sold the BTC back to LTC direct id get roughly 1000 again (yep i ignored commission and volatility to make things simple)
now take table 2
lets say BTCUSD went to $14.35 due to halving causing abit of a price bump*. LTC miners would sell their LTC for dollar buy in BTC using dollar for only 4.268BTC and be left with only 861 LTC when buying back LTC.. so they wont do that.. instead they would sell LTC direct to BTC causing the BTCLTC price to drop whilst they sell at the top buy prices or add more lower prices to the sell wall to try grabbing their quick bargains.
and now you see the result in table 3. LTC still worth $.0.612 due to cost of production but not worth as much BTC due to the evening out of the arbitrary cycle until it becomes unprofitable again.
*don't reply like sheep with the scripted quote "BTC price has already factored in the halving"
" was a typo too eh? Why would you be so surprised about 14 btc worth of purchase of a security??
