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What to expect from the Litecoin (LTC) halving?

Thu 03 Aug 2023 ▪ 3 min of reading ▪ by Fitah
Event

As the Litecoin halving approaches, excitement is building in the crypto community. Investors and crypto traders alike are all looking forward to this week’s major event in the crypto-sphere. Should you prepare to buy? Here’s what to expect at Halving Litecoin!

Litecoin halving

Litecoin’s most anticipated event of the week

The crypto-sphere is currently focused on the fast-approaching Halving Litecoin. This event is indeed attracting the interest of investors, miners and crypto traders alike. According to the Nicehash countdown, the event will take place in around 8 hours’ time.

The halving is an integral part of Litecoin’s history. This event is considered an anti-inflationary measure for the token’s value. In fact, rewards are reduced with each halving, and the next reduction is scheduled at 6.25 LTC per block on the 2,520,000th block.

Litecoin halving: what can we expect?

For Litecoin miners, this event will result in a halving of their rewards for each block mined. This will have an impact on circulating supply, as the LTC generation rate will decrease from 12.5 to 6.25 LTC per block.

According to the law of supply and demand, a decrease in available supply should lead to an increase in the price of Litecoin (LTC). This is because relative demand would increase. However, historical data contradicts this logic.

Should we prepare to buy?

Looking at Litecoin’s (LTC) price reactions over the previous two halving periods, a buy doesn’t seem like a good idea. In fact, the weekly chart of LTC/USD on TradingView shows that the price of LTC did not rise significantly immediately after the halvings.

Following the first halving on August 25, 2015, the Litecoin (LTC) price rose only slightly by 20%, an insignificant long-term gain. Then, at the second halving on August 05, 2019, LTC even suffered a 50% drop.

Litecoin (LTC) weekly chart - TradingView
Litecoin (LTC) weekly chart – TradingView

Litecoin’s price experienced volatility over the 553 days following the first halving. In contrast, it fell by 70% over the 210 days following the second Halving. Significant increases were generally only observed after Bitcoin’s halving.

All this data suggests that it is possible to observe volatility movements on Litecoin after the halving on Wednesday. To consider a long-term buying position, we’ll probably have to wait for Bitcoin’s next halving. Nevertheless, this does not preclude Litecoin (LTC) trading in the short to medium term after the halving.

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Fitah avatar
Fitah

Je suis passionnée par les cryptomonnaies, un monde que j'ai découvert il y a peine 3 ans. Mon seul but est de vous informer de cet univers incroyable à travers mes articles.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.