What happened
Today, a range of cryptocurrencies that aren’t usually tied together were surging. Investors in Litecoin (CRYPTO:LTC), Bitcoin Cash (CRYPTO:BCH), and Cardano (CRYPTO:ADA) saw impressive gains. Each of these cryptocurrencies saw double-digit increases, with Litecoin and Bitcoin Cash each trading more than 20% higher (at their daily highs) compared with yesterday’s levels.
Even in the volatile crypto world, these moves are worth noting. Accordingly, investor interest in these three specific names has unsurprisingly picked up today.
Image source: Getty Images.
So what
Yesterday, retail investors may have been watching the earnings cycle, as AMC Entertainment (NYSE:AMC) reported its third-quarter earnings. For investors in the popular meme stock, this was a big event.
It turns out this earnings report was a big event for big-name cryptocurrencies as well.
In the movie theater operator’s earnings call, it was noted that Litecoin and Bitcoin Cash were two cryptocurrencies that AMC CEO Adam Aron was looking to accept before the end of the year as payment.
Crypto investors jumped on this news and appeared to be bidding up the tokens that AMC will accept in anticipation of broader usage and the network effects this could cause. The inclusion of these particular cryptocurrencies is notable. For a given company to implement a large-scale crypto implementation, seeing which cryptocurrencies a company like AMC would choose to accept is a big deal.
That’s because the real-world utility created from cryptocurrencies is something that’s been hard to define. Many crypto investors have jumped on cryptocurrencies as the future of commerce. However, with little real-world adoption, this argument has become more and more difficult to make. The large-scale adoption of specific cryptocurrencies at AMC Theatres provides these given cryptos with a strong catalyst moving forward.
Cardano wasn’t specifically listed as a cryptocurrency to be included with this rollout. However, Cardano’s rise appears to be more idiosyncratic in nature, as this token has been making a strong technical move in recent sessions.
Now what
The crypto space is one that’s been broadly defined by momentum-driven moves. Accordingly, investors need to decide if this catalyst could provide fuel for an extended rally, or if the party will come to an end in short order.
Right now, Litecoin, Bitcoin Cash, and Cardano are three tokens with incredible upside momentum. These are tokens that should be on every investor’s watch list right now.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.