Litecoin (LTC) and Dogecoin (DOGE) are gathering hard as Bitcoin (BTC) struggles to stay above $ 23,800. Many analysts say the increase in the major digital currencies is directly related to Bitcoin’s price behavior, and historical data shows that they have a tendency to move as BTC goes through bullish and bearish cycles.

As altcoins begin to show signs of renewed momentum, traders become more confident in the strength of Bitcoin’s trend.

Altcoin slumped against Bitcoin during December, especially as BTC struggled to break out of the $ 18,000 to $ 19,400 range, but this happened in a low-volume environment.

At that time, the size of the cryptocurrency market declined as Bitcoin consistently turned down $ 19,400. Consequently, most of the volume was directed to BTC, and the alt currency market was temporarily free of trading activity.

A Bitcoin hack of over $ 20,000 revives interest in Litecoin and Dogecoin
Historically, after a major surge in Bitcoin, the digital currencies that were present in 2011-2014 have shown an upward trend. These cryptocurrencies include Litecoin, Dogecoin, and XRP.

One of the main reasons for this rise in cryptocurrencies is volume. Traders like to pump altcoins, which increases volume in a short time and provides high volatility.

Since these cryptocurrencies are historically significant when they start to rally, their progress usually lasts longer than other, lesser known and lesser known digital currencies.

For example, the value of Litecoin has increased by more than 57% in the last 7 days. During the same period, Bitcoin grew by 34% despite surpassing it at $ 23,800 on the major exchanges.

Analysts note a positive trend: altcoins do not experience much volatility, as they did in 2017. A trader under the pseudonym MoonOverlord said:

“The one thing that never happened during this is that people panicked and threw ALTS USD every time $ BTC moved 5% in 2017. I swear to God that you’re going to look, Pam, the alternative rate will be -25% when you move 4 % BTC. Was awful. The rope and stabilizer didn’t even exist, so it should have been $ btc OR $ alts. ”
Are there major factors driving the current increase?
According to Qiao Wang, a quantitative research trader and researcher at DeFi, Litecoin is not necessarily “digital silver” in the same sense that analysts view bitcoin as “digital gold.”

Since its launch, the main argument in favor of Litecoin has been that it could act as silver if Bitcoin became Gold 2.0. Wang Sa:

“If you are new to cryptocurrency, you have bought BTC and want to know the origin of the cryptocurrency silver versus gold BTC. This is not LTC. This is ETH. The other day, Paul Tudor Jones used an interesting analogy from the metallurgist to classify crypto assets. They are the precious cryptocurrencies. These are the industrial cryptocurrencies. BTC is precious. ETH is an industrial industry. LTC is neither this nor the other. ”
Litecoin has several strong fundamentals that can improve market sentiment. For example, the Litecoin team launched MimbleWimble, a privacy solution originally designed for Bitcoin.

However, these fundamentals are not sufficient for a gain of 57% during the week. Perhaps the main reason for the massive increase in the big digital currencies is the big game of wealthy investors and traders who want to make money quickly after the bitcoin surge.

Source: CoinTelegraph