The Year That Was: Litecoin’s 2019 Performance
Litecoin (LTC), often referred to as the “silver to Bitcoin’s gold,” had a turbulent 2019. The cryptocurrency witnessed a significant price increase before its August 2019 halving, when block rewards were reduced from 25 LTC to 12.5 LTC. However, post-halving, LTC saw a 55% price drop, falling from $94 to $42, while its hashrate declined by 70%.
Despite this downturn, Litecoin still managed to close the year at $42.02, marking a 31% increase from its January 1st price of $31.98. The mixed results have left investors and analysts speculating about Litecoin’s trajectory in 2020.
Charlie Lee: “No One Knows What Will Happen”
Litecoin’s creator, Charlie Lee, has always been vocal about his views on price predictions—he doesn’t believe in them. In a conversation on Anthony Pompliano’s Off the Chain podcast, Lee dismissed speculation:
“If anyone tells you they know [where prices are headed], they’re lying… I’ve seen bull and bear markets before, and no one really knows when the market will turn.”
Lee remains cautious about Litecoin’s mainstream adoption, suggesting that mass crypto usage may still be years away. He believes improving the user experience will be critical to widespread adoption.
Ryan Selkis: From “Useless” to “Bitcoin Betanet 4”
Messari founder Ryan Selkis changed his stance on Litecoin, upgrading it from “useless” to “BTC Betanet 4” in his Crypto Theses for 2020. Litecoin has long been seen as a testing ground for Bitcoin’s new features, and its developers are now working to integrate MimbleWimble, a privacy-focused protocol. If successful, this could give Litecoin an edge over competitors like Bitcoin Cash (BCH) and Zcash (ZEC).
WalletInvestor Predicts a 39% Decline
Not all analysts are optimistic. WalletInvestor, a popular crypto prediction platform, estimates that Litecoin could fall 39%, sinking from $50 to $30.58 by the end of 2020. While algorithm-based predictions are not foolproof, this suggests a bearish outlook for LTC.
Willy Woo’s Bullish Perspective
On the flip side, respected crypto analyst Willy Woo believes Litecoin may be gearing up for a bullish breakout. In early 2020, Woo noted that Litecoin’s Difficulty Ribbon, a metric tracking miner behavior, was recovering.
“Selling pressure from miners is easing, setting up a potential breakout for LTC.”
This could indicate an upcoming price surge if demand for LTC grows.
John Kim: LTC Could Reach $175
Litecoin Foundation’s John Kim is one of the biggest LTC bulls, predicting that Litecoin could rise 300%, reaching $175 if Bitcoin’s 2020 halving sparks a market-wide rally.
“Bitcoin’s halving could drive prices higher, and Litecoin will follow.”
This forecast is contingent on Bitcoin’s performance, but if BTC sees a major price surge, Litecoin could benefit from increased investor confidence.
Technical Indicators: Is Litecoin Overbought?
Market metrics suggest conflicting signals for Litecoin’s valuation:
- Network Value to Transactions Ratio (NVT): At 232, Litecoin appears overbought compared to previous bull runs.
- Market-Value-to-Realized-Value (MVRV): At 0.7, Litecoin is near oversold territory, indicating a potential buying opportunity.
These indicators suggest that while Litecoin has struggled, it may be poised for future recovery.
Final Thoughts: Can Litecoin Stay Relevant?
Litecoin faces an uncertain but promising 2020. The success of its privacy enhancements and broader market trends—especially Bitcoin’s halving—will shape its trajectory. If development efforts remain strong, LTC could continue competing with other top cryptocurrencies.
However, if momentum stalls, Litecoin may struggle to maintain relevance in an increasingly competitive market. Investors should keep a close eye on market signals and upcoming technological advancements.
Would you bet on Litecoin’s success in 2020?