BTC surpassed its all time high, reaching a milestone US$1000 per Bitcoin on Mtgox earlier today. As BTC's prices slowly inch up after the mini-crash after the Senate Hearing, we have seen a large spillover of funds pouring into alternate cryptocurrencies. Over the last 2 days alone, the prices of alt coins such as PeerCoin (PPC), NameCoin (NMC), PrimeCoin (XPM), and FeatherCoin (FTC), have at least doubled in value, some  up to 500%.

Most notable is Litecoin, dubbed as silver to Bitcoin's gold, which price recently surged and increased almost 10 fold in the last 10 days since it passed the $4 mark. Since the last 60 hours, Litecoin has more than tripled from $10 per LTC to its current price of US$35/LTC! Not exactly sure what's behind this surge in prices, especially in LTC, but maybe Max Keiser's Interim target of $50 for LTC played a part.

We are initiated coverage of litecoin with an interim target of $50. Newest @KeiserReport features one of the biggest players in LC
— Max Keiser (@maxkeiser) November 18, 2013

Source: http://www.coindesk.com/litecoin-silver-bitcoins-gold/
Source: http://www.businessinsider.com/litecoin-price-2013-11
Source: http://www.forbes.com/sites/reuvencohen/2013/11/27/the-top-30-crypto-currency-market-capitalizations-in-one-place/
Source: http://www.tradethenewsroom.com/bitcoin-breaks-1000-litecoin-sees-400-gain-4092
Source: http://www.reddit.com/r/litecoin/comments/1qvxcu/max_keiser_has_started_covering_ltc_on_his/

But this insane surge has got me thinking, is a huge crash in the making?

If we look back at the April crash, and compare it with the current litecoin chart, we can see some similarities. See below for a comparison.


From my understanding of the markets thus far, I am assuming that every big spike in price has to be followed by a big correction. The higher you jump, the harder you fall. And let's say that Litecoin prices are kind of mimicking Bitcoin prices (as it was back in April 2013), albiet at a much faster pace, we can assume that this crash is coming. And it's coming very soon.

But when will that happen? Where will the peak be? Will LTC prices peak at $50, $80, $100, or $200 before it takes an 80% nosedive? I can't tell for certain what price LTC will peak at before crashing, but what is your guess?

If you're holding Litecoins or thinking of buying them, read these 2 reddit discussions before doing so!
Source: http://www.reddit.com/r/litecoin/comments/1rivqr/im_going_to_go_out_on_a_limb_here_and_say/
Source: http://www.reddit.com/r/Bitcoin/comments/1rjv6l/my_response_to_a_litecoin_advocate/

Source: http://bitcoinwisdom.com/markets/btce/ltcusd
Source: https://btc-e.com/exchange/ltc_btc
Source: http://coinmarketcap.com/


Well my plan for the next few days is to convert some of my LTC back into BTC. I think BTC prices will hold rather stable even when LTC flash crashes, and thus would rather sell my LTC into BTC than hold onto useless FIAT dollars. I currently have about 80% of my funds in LTC, and have placed sell positions for half of my Litecoins, ranging from 0.055 LTC/BTC all the way up to 0.15. And will be looking to re-enter into litecoin at the bottom of the crash, if the crash comes.

Crash or no crash; all the best for your trading everyone!

So, what's your move going to be in the case of a Litecoin crash?

Jeff Berwick is a Canadian entrepreneur, economics, finance, and investment writer, and libertarian and anarcho-capitalist activist. He believes that we are going through a significant market shift. He goes on to say that the excessive printing of money will lead to hyperinflation, and adds, this is exactly what the Federal Reserve is doing now. They have been printing 10% of the money every year, for the last 5 years. He believes that the economic (US dollar and Stock markets) collpase is imminent, and that we should look towards alternate forms of wealth such as Gold or Bitcoins.

Bitcoin, the first free-market non-localized private money, is seen as a great threat to the Government's monopoly of money. However, the recent economic collapses in smaller regions (think Cyprus), have spurred the rise of Bitcoin and its non-centrality as an alternative to the FIAT currency.

Or watch it on YouTube: US Dollar Collapse, Soon Won't Be Able to Buy Gold at Any Price -- Bitcoin - Galt's Gulch

Dan Popescu, a global markets strategist and gold expert, shares his thoughts about Gold and China. He talks about a 'black swan event' that is at our doorstep and how that can make the price of gold 'explode' in a day. Gold is important because it is a "hard currency" that has value, as opposed to the FIAT currency which is not backed by anything.

China is a major buyer of gold, and their strategy is to gather a large deposit of gold to be able to properly back up their currency, unlike any other currency now. If the Chinese can successfully back up their currency with gold, they will be able to give credibility to their currency.

The world is becoming increasingly dissatisfied with the current system. He believes, within the next 3 to 5 years, that "we'll have a currency crisis with a new international monetary system, and gold will defnitely be part of it." Gold will shoot up in a shock, surprise move, and he "won't be surprised" if gold goes above US$2000/oz within a year.

Or watch it on YouTube: Maybe the most important video you'll ever see on gold - Interview with Dan Popescu

Another video also highlights that 90% of market movement will come in the last 10% of time. Click here to watch the full video: Silver - 90% of the move comes in the last 10% of the time

Last video I want to share with you is from Ned Goodman. Ned is a Canadian billionaire with a unique perspective on the world economy. He starts off in the video by saying that "the dollar is about to be dethroned as the world's de facto currency".

He justifies his claim by explaining how the US dollar is backed by nothing, but still has a strong power in the world, because all oil in the middle east is traded with US dollars. That is how the dollar got to where it is today. However, China has recently made deals with Russia to buy oil in Chinese Yuan (RMB), opening the path to international partnership between these two big players. It was also obvious from the tension in Syria, that China and Russia are on the same side. We are heading into a period of "stag-flation" as the Federal Reserve loses its power to print money at will.

We buy things to protect our future purchase power. To continue doing so today, he emphasizes the need to start buying hard assets.

Or watch it on YouTube: Canadian billionaire predicts end of US Dollar as world's reserve currency - Ned Goodman lecture

For those of you who are still unsure about what FIAT currency means, or how the US dollar is not backed by anything, I'll end of with one of my favourite videos that very aptly answers these questions.

Or watch it on YouTube: When Will The Economy Collapse?

Thank you for reading, and I hope you gained some value from this post. Be safe and all the best!