Litecoin plunged to roughly half its all-time high earlier today. Shutterstock
Litecoin prices fell today, dropping to roughly half of the all-time high they reached earlier this month.
The digital currency declined to as little as $46.04 earlier in the day, roughly 50% lower than the high of $92.07 it hit on September 2, CoinMarketCap data shows.
The currency’s price has been struggling lately, suffering continued losses after enjoying a sharp rally earlier this year.
The price of Litecoin has been encountering headwinds from China, following the broader cryptocurrency market lower as traders sell off these digital assets.
Earlier today, BTCC announced that all trading would cease as of September 30.
This announcement was simply the latest development in what has been an ongoing regulatory crackdown in China.
At the start of the month, China banned the use of initial coin offerings, which are token sales that companies use to raise money.
Since that time, reports have been circulating that Chinese authorities will prevent exchanges from trading on their soil.
Crypto Market Sell-Off
Bitcoin fell to its lowest in more than a month following the news about BTCC, and many other digital currencies moved in the same direction.
This is to be expected, as Iqbal Gandham, UK managing director of social trading platform eToro, noted that "most" cryptocurrencies follow Bitcoin’s price movements.
Litecoin ‘Sensitive’ To Chinese Markets
While digital currencies in general may track the price movements of Bitcoin, Litecoin is even "more sensitive" to Chinese markets than other cryptocurrencies, said Brad Chun, chief investment officer at Shuttle Fund Advisor.
Litecoin is "largely dominated" by Chinese investors, he stated.
Lucas Geiger, founder and CEO of Wireline, offered similar input, asserting that there is a "China effect" that will amplify sell-offs in some of the more volatile cryptocurrencies.
Disclosure: I own some Bitcoin and Ether.