Litecoin (CRYPTO: LTC) is trading lower by 10.9% to $97.91 Monday afternoon. Shares of several altcoins are trading lower amid Bitcoin falling some 3% for the session.
Bitcoin is the largest and most dominant cryptocurrency in terms of market capitalization and trading volume. As a result, it often sets the tone for the entire cryptocurrency market. When Bitcoin experiences a significant price drop, it can shake investor confidence in the broader crypto market, leading to a sell-off across various cryptocurrencies, including Litecoin.
Litecoin is also often seen as a "silver" to Bitcoin's "gold" due to its similar technical features but with some differences, such as faster block generation times and a different hashing algorithm. Despite these differences, Litecoin's value proposition is closely tied to Bitcoin's performance, and if Bitcoin's price falls significantly, investors may perceive Litecoin's value proposition as weaker, leading to a decrease in demand and price.