Litecoin prices, which have been having a great year, recently surged to a fresh, all-time high.
The digital currency, a fork of Bitcoin, rose to as much as $132.34 earlier today, according to CoinMarketCap.
By reaching this level, Litecoin has risen more than 2,950% from its price of roughly $4.33 at the start of 2017, additional CoinMarketCap data shows.
Close Relationship With Bitcoin
Litecoin, which has risen to several record price levels this year, has been rallying as Bitcoin has also climbed to fresh, all-time highs.
Bitcoin, the largest cryptocurrency by market capitalization (market cap), has surged to more than $17,000 in the last few days, according to CoinDesk Bitcoin Price Index (BPI), a measure that draws data from various exchanges.
While Litecoin’s YTD rise has been far greater than that of Bitcoin, it is worth noting that the two digital currencies have frequently followed each other in terms of price.
A CoinDesk analysis of Bitcoin and Litecoin prices that was published in March showed that over the last several years, there were six separate quarters where the price correlation between the two cryptocurrencies was at least 0.7.
As Litecoin prices have climbed this year, market experts have emphasized this tight relationship.
Tim Enneking, managing director of Crypto Asset Management, recently stated that the altcoin is “absolutely cruising in BTC’s wake!”
“BTC is in the headlines, but there has been no substantive developments or news regarding litecoin in months,” he added.
For months, market observers have been voicing concerns that digital currencies have entered a bubble.
Many cryptocurrencies have continued to rise in price, a development that has helped provide evidence against the claim that the prices of these digital assets have grown inflated.
While these developments have alleviated the concerns of some analysts, others are not convinced, with 64% of institutional investors taking part in a recent Natixis survey asserting that Bitcoin is in a bubble.
Jacob Eliosoff, an algorithmic programmer and cryptocurrency fund manager, has warned that not only have digital currencies entered a bubble, but that this bubble is doomed to burst.
He emphasized that the returns produced in the last three years have been “staggering,” and could continue for whatever digital currencies end up surviving a downturn.
“The natural analogy is the dotcom bubble, which featured a huge rise followed by a huge drop, lots of people losing their shirts, but still in the end the emergence of technologies and companies that have fundamentally transformed society,” he said.
Eliosoff added that “I think that’s a more likely scenario than a pure stratosphere-to-0 bubble like the old tulips trope.
Article Courtesy of Forbes