Please ensure Javascript is enabled for purposes of website accessibility

Why Ethereum, Bitcoin Cash, and Litecoin All Rocketed Higher This Week

By Chris MacDonald – Nov 12, 2021 at 12:19PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Continued corporate adoption of cryptocurrencies is a big deal.

What happened

This week, Ethereum (ETH -2.25%)Bitcoin Cash (BCH -2.87%), and Litecoin (LTC -4.61%) each saw impressive gains. These tokens appreciated between 20% and 47% at their intraday weekly highs. Indeed, in the crypto world, such moves aren't necessarily surprising. However, the common catalyst driving these three cryptocurrencies higher may be worth looking at.

The catalyst in question happens to be a key announcement from AMC Entertainment (AMC -7.44%). The theater chain announced in September that the company would soon accept these three cryptocurrencies at theaters across the country. 

Phone in front of a screen showing market data.

Image source: GETTY IMAGES.

However, via a tweet on Thursday, AMC CEO Adam Aron pointed out that these three cryptocurrencies are available right now for settling payments at AMC theaters.

Unsurprisingly, Ethereum, Bitcoin Cash, and Litecoin all popped on the news.

So what

Currently, the option for patrons to pay for tickets and other AMC-related purchases in cryptocurrency is only available online. However, according to initial data from AMC's CEO, 14% of all online transactions took the form of crypto since the announcement.

This is certainly a big deal for crypto enthusiasts betting on wider adoption among these core cryptocurrencies. As more data rolls in with regards to the scale of crypto usage for online purchases, investors may be able to put a more accurate value on the network effects and what utility such cryptocurrencies actually have for real-world commercial applications.

Now what

This recent high-profile adoption of cryptocurrency for online payments by a large corporation is a positive signal for crypto bulls. This goes double for those heavily invested in Litecoin, Bitcoin Cash, or Ethereum.

As real-world use cases continue to emerge and adoption becomes more widespread, the potential for continued capital flows into the crypto sector increases. Investors in these three top cryptocurrencies appear to like the network effects created by this week's announcement. Accordingly, these three cryptocurrencies are likely to be on watch again in the coming weeks.

Chris MacDonald owns shares of Ethereum. The Motley Fool owns shares of and recommends Ethereum. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.