Is Swapping BTC to LTC Profitable This Year?
Litecoin is one of the first cryptocurrencies developed after Bitcoin, which explains the similarity of their protocols. However, the main difference between Bitcoin and Litecoin is that the latter reduced the block time, which resulted in more possible transactions per second, an increase in the total supply, and lower transaction fees.
LTC is considered digital silver. Moreover, with a relatively low price, it can bring more benefits to your portfolio. Therefore, we offer you an in-depth BTC to LTC performance comparison.
Bitcoin in 2022
The price of Bitcoin and other cryptocurrencies has been correlated with the monetary policy of the US Federal Reserve in recent years, and indulgence from the regulator after the start of the coronavirus pandemic in 2020 created a favorable investment environment in which both stocks and cryptocurrencies grew. But quantitative tightening is triggering the reverse process, Bloomberg warned in a May report.
The price of Bitcoin in May decreased by 40% and for the first time since 2020 fell below $27,000.
Analyzing Past Price Movements
After the appearance of cryptocurrency in 2009, 1,300 Bitcoins cost 1 dollar. In November 2010, the exchange rate increased 6 times and amounted to 0.
5 dollars per coin. In less than 3 months, the cost has doubled and reached $1. In early June, it was already worth $10, and literally, a week later, there was a growth spurt to $32 per 1 BTC. Then the cost dropped to $10 per unit.
A sharp jump in the cost of a unit of cryptocurrency occurred in December 2017, it grew 16 times and amounts to ,000.
The BTC’s ATH was observed in late 2021 — the price then hit $69,000.
Future Price Predictions
PlanB predicts that the value of Bitcoin will reach $98,000 in November 2023 and $135,000 in December. Prior to that, they correctly predicted cryptocurrency quotes in August, September, and October 2021. The analysts are known for applying the S2 °F model, which assumes that the price of Bitcoin will rise to $1 million after 2024.
Litecoin in 2022
In early 2022, analysts at Santiment reported that Litecoin was in its biggest accumulation phase since 2017. According to experts, altcoin holders, who own from 10 thousand to 1 million LTC, during the last 15 weeks of 2021 significantly increased their investments in the altcoin, accumulating more than 5% of its supply. This means that investors are massively hoarding Litecoin in anticipation of the growth of the cryptocurrency.
However, unfortunately, this didn’t help LTC not to fall by almost 50% in 2022. Like its older golden brother, Litecoin suffers a crypto winter hitting yearly lows month after month.
Analyzing Past Price Movements
Last year, several important events happened with the Litecoin rate. First of all, it has updated its historical high value above $410 (a 200% increase since the beginning of 2021). This happened in May, a month after the price of Bitcoin first exceeded $63,000. After updating the historical maximum, the Litecoin rate began to decline and fell below $108 in July (a 74% drop). By mid-November, Litecoin rose to $280 (an increase of almost 160%).
Future Price Predictions
According to the forecast of the research group Crypto Research Report, in 2025, the price of Litecoin will exceed $1.2 thousand, and by 2030, it will increase to $2.2 thousand.
Despite the fact that the value of Litecoin at the beginning of 2022 fell by more than 73% from the historical maximum set in May 2021, the altcoin still has the status of “digital silver” and is actively used to make fast and cheap payments. In the coming months, the value of the asset could increase significantly due to the release of the MWEB update, as the value of cryptocurrencies usually rises on positive expectations.
BTC to LTC: Potential Profitability
Considering the price predictions above, let’s calculate the potential gains from the BTC-LTC conversion.
If invested today ($56 per coin), by 2025 ($1,200) your deposit will multiply by 21 times.
And if you stay in BTC, your invested $21,000 will turn into $135,000. That’s an increase of 6 times.
Conclusion
The decision of leaving one coin in favor of another is always difficult. No one wants to face FOMO, for example, in case BTC moons right after the transaction. Therefore, it is recommended to have small amounts of each. Whether you switching from BNB to BTC or vice versa, make sure you don’t go all in; leave a tiny portion for the future.
