When the time comes, Chinese will likely pile into LTC again. It has the cultural capital there and the liquidity. BitShares used to have heavy Chinese support on BTC38 but it looks like that dried up.
I would expect that too but judging by price they seem to be all about BTC right now.
That's actually normal. Look at LTC:BTC in October 2013. Bitcoin rose fast and LTC:BTC fell. But when the real rally started, people began to see BTC as "expensive" and they wanted to buy altcoins. For Chinese, that meant LTC and the BTC-E classics (NMC and PPC).
Although I don't believe in LTC at all (in terms of innovation or usefulness), I find myself in the position where I'm oddly bullish on it. The reason for that is that I think
other people will be bullish on it. During bitcoin rallies, other people tend to think that bitcoin is "expensive" because they can't afford to buy one BTC (which is, of course, nonsensical). They also think that maybe LTC or some other coin might go as high as BTC. They plug those numbers into a calculator and think of how rich they'll become. (LOL)
In addition, LTC's brand is very strong in China. It's on all the major Chinese exchanges. So I think LTC will be the logical altcoin of choice for new Chinese buyers.
But it's hard to say what's happening now. Is this the beginning of a huge rally that actually attracts new buyers or is it just another failed push to 315? Either way, altcoins are becoming very cheap compared to BTC. LTC:XBT Doge:XBT, XMR:XBT, BTS:XBT, etc. all approaching all-time lows when accounting for halvings and reduced emission.
Even if bitcoin falls 20%, these battered altcoins will likely rise 20% against BTC (regaining what they've lost in the past month)..so you wouldn't lose USD/EUR. But if bitcoin goes on a big rally, the altcoins might continue to go down for another couple of weeks but then perhaps double or quadruple against bitcoin. So buying altcoins now looks very good.
