Litecoin suffers a major setback as it plunges 14% in a single day

Litecoin (LTC), one of the oldest and most popular cryptocurrencies, faced a severe blow on Monday as it dropped 14% in value, reaching its lowest since July. According to the Investing.com Index, Litecoin was trading at $85.260 by 21:31 (16:01 GMT) on Monday, marking the largest one-day percentage loss since September 7, 2021.

The sharp decline in Litecoin’s price came amid a broader sell-off in the cryptocurrency market, as investors reacted to the news that the U.S. Securities and Exchange Commission (SEC) had filed lawsuits against two major crypto exchanges, Coinbase and Binance. The SEC accused both platforms of violating securities laws and engaging in illegal activities, such as offering unregistered securities, facilitating insider trading, and manipulating the market.

The lawsuits have raised concerns about the future of the crypto industry in the U.S., as well as the regulatory risks that crypto investors face. Many analysts have warned that the SEC’s actions could trigger more volatility and uncertainty in the crypto space, as well as deter potential new entrants and innovation.

Litecoin, which was created in 2011 as a faster and cheaper alternative to Bitcoin, has been struggling to regain its momentum after reaching an all-time high of $412.96 on May 10, 2021. Since then, Litecoin has lost more than 79% of its value, as it faced competition from newer and more advanced cryptocurrencies, such as Ethereum, Solana, and Polygon.

Litecoin’s woes were also exacerbated by a recent hoax that falsely claimed that Walmart, the world’s largest retailer, had partnered with Litecoin to accept it as a payment option. The fake news caused a brief spike in Litecoin’s price on September 13, 2021, but it quickly reversed after Walmart denied the report and called it a “complete fabrication”.

Despite the challenges, some Litecoin supporters remain optimistic about its prospects, arguing that it still has a loyal and active community, a strong network security, and a high level of adoption and integration. Litecoin is currently the 15th largest cryptocurrency by market capitalization, with a total value of $5.7 billion.