Jobless claims came in worse than expected for this week, sending the Dow Jones Industrial Average down in pre-market. Financially motivated layoffs, small businesses on lockdown, and larger companies uncapable of continuing businesses motivated the loss.
The figure began to decline across the United States since the outbreak, pushing demand for the currency lower and lower across global markets. As a result, Bitcoin has become a safe haven alternative.
Now that another wave of coronavirus cases is underway, it looks like this would benefit asset classes outside foreign exchange once again. Traditional markets are catching up to the appeal of cryptocurrencies to diversify their portfolio.
Although the stock market usually attracts attention when forex is down, Nasdaq is showing high volatility down to the bears. This drives the market closer to Bitcoin, which now breaks its stagnant tread to an upcoming surge.
As more traders and investors take an interest in Bitcoin, Litecoin, and their peers, more countries demand to get into the market. Australia recently opened a local crypto exchange platform especially made for local citizens.
Bitcoin Affects Litecoin
While all that is happening, Litecoin is paying close attention to the top cryptocurrency. Bitcoin’s potential surge would pull most of the other cryptocurrencies upward, consequently pulling LTC along with it.
Charts claim LTC is on a short-term bearish bias, but it won’t be for long. On the 14-day timeframe, Bitcoin is getting ready for a breakthrough, which means nothing but good news for Litecoin.
Plus, current losses have been somewhat contained. Its value as the seventh largest digital asset is currently at $2.8 billion with an average trading volume of $2 billion on the daily.
If reports are true and Bitcoin will rally out of its range, LTC will inevitably follow soon after.
Litecoin closed yesterday’s trading at 1.36%, but it could surge following this news.