What happened
Today, Litecoin (CRYPTO:LTC) is one of the big movers making headlines. This cryptocurrency has surged more than 20% at its peak today, over yesterday’s levels. This price action has moved Litecoin into 14th spot in the cryptocurrency rankings by market capitalization. Accordingly, investors looking at larger-cap tokens are now seeing LTC cross their screens.
It appears there are a number of drivers for this move in LTC. Among the key drivers is broadly bullish momentum picking up across the entire crypto world. With mega-cap tokens Bitcoin and Ethereum each hitting new all-time highs of late, it’s unsurprising to see tokens such as LTC follow suit.
Of course, Litecoin’s rise today has outpaced most of its crypto peers, particularly those with multi-billion-dollar market capitalizations. Accordingly, this is a token that’s generating significant interest in the market today.
Image source: Getty Images.
So what
This move comes as investors look for asset classes to battle inflation fears. With Federal Reserve tapering underway, the consumer price index rising to levels not seen in some time, and the potential for interest rate hikes on the horizon, investors are looking to cryptocurrencies like Litecoin as places to hide.
While Litecoin remains more speculative than Bitcoin or Ethereum, investors seem to like the adoption this cryptocurrency has seen among consumers and retailers. Viewed as a potential commerce-oriented token, Litecoin could rise in response to negative views about fiat currency. Such views appear to be taking hold today.
Now what
As mentioned, Litecoin’s rise to 14th place in the cryptocurrency rankings shines more light on this lesser-known token. For those currently invested in Litecoin, this is a great thing.
Now, whether this momentum can be maintained is a whole other story. However, today the technical setup and current momentum underpinning LTC appear to be strong. Accordingly, this is a token that’s reached my watch list today.
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.