On September 14, Multicoin Capital, a sizeable crypto hedge fund backed by notable VC Fred Wilson with $75 million AUM, called Litecoin (LTC) a “relic of the pre-smart contract platform crypto ecosystem” and recommended a short-trade on the cryptocurrency that was trading at a year-low in a published report.
Since that time, the price of Litecoin has jumped nearly 20% from $53.50 to $63.41.
Adding further pressure on Multicoin’s bearish call is the fact that short interest on Litecoin has dropped off over the last week. Previously, short interest was sitting at more than $10 million in LTC sold short, but today that number has been reduced to roughly $6.4 million.
Given that Litecoin continues to put in higher lows since September 12, a new bullish trend could be forming, indicating more pain ahead for the leading crypto hedge fund. LTC is currently valued at $3.7 billion, ranking it 7th in the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.