Litecoin Price Drop Following Halving: Experts Weigh In
Although the price of LTC fell, its use as a payment method grew | Credit: Shutterstock
- After the halving, block rewards are now only 6.25 LTC per block.
- Although the LTC price has stabilized at $86, its use is growing
- LTC may hit a new all-time-high 400 days or more following the 2023 halving
Litecoin prices have lost over 5% since it completed its third halving event. According to CoinMarketCap , the price of Litecoin fell by 5.24% to $86.22 at the time of writing and after the halving.
Litecoin’s most recent halving event reduced the network’s mining payouts from 12.5 Litecoins per blockchain generated to 6.25 Litecoins, which lowered the amount of new Litecoins that miners may produce.
CCN reached out to Litecoin Foundation for commentary but did not receive a reply at the time of publishing
Supply and Demand
Founder of Litecoin Charlie Lee stated in an interview with American cryptocurrency wallet company Ballet on Thursday that “selling pressures from the miners will be halved if the number of Litecoins they mined gets halved.” “The price of Litecoin will increase if demand remains unchanged.”
Additionally, Nick Ruck, chief operations officer of ContentFi Labs, a blockchain infrastructure platform based in Singapore weighed in on the current bearish sentiment that has struck at the LTC halving:”Although the Litecoin price halving should have been a positive event, trader sentiment has been more affected by the bearish market and recent negative industry news,” stated Ruck
According to Ruck, the recent hack on the decentralized finance platform Curve Finance and market rumors that U.S. prosecutors are thinking of filing a lawsuit against cryptocurrency exchange Binance for alleged fraud have exacerbated the market’s negative attitude.
The value of Litecoin dropped after its two prior halving events in 2019 and 2015, and it stayed rangebound for months.
Intrestingly, both price halvings occurred at roughly the same price. The increase of the cryptocurrency’s user base and utility-related revenue appear to have gone smoothly.
This surge in usage could be because, in contrast to certain other networks like Bitcoin, Litecoin provides quick and inexpensive transactions. Nonetheless, LTC investors can only hope this rise will be reflected in the price.
Rekt Capital: LTC Tends to Rally More Post-Halving
Rekt Capital, a well-known trader and technical analysis specialist, offered a thorough study of Litecoin’s (LTC) price patterns surrounding its halving events back in January 2023, and they were correct on most of the points thus far.
According to Rekt Capital , LTC had traditionally had significant rallies before its halving. Prior to the initial halving, LTC had a 122-day low and a subsequent 820 percent increase. It reached its lowest point 243 days before to the second halving and recovered by 550%.
The post-halving rallies, on the other hand, were even more spectacular. LTC showed a significant increase of over 14,000% following the first halving and over 15,00% following the second. This implied that LTC tended to rise more after the halving than before.
According to the analyst , LTC had stabilized for 458–578 days following a halving before exploding. LTC might take a year to start, possibly in July 2024, if the consolidation time was continuously dropping by about 120 days.
After its halving events, Litecoin (LTC) has demonstrated a tendency to surge more dramatically than it had previously. In the 853 days that followed the initial halving, LTC saw a 15,330% surge. Moreover, there was a significant upswing during the second post-halving phase, with LTC rising 1562% in 639 days. Notably, LTC hit new all-time highs as a result of each of these post-halving rallies.
Rekt Capital proposed in January 2023 that, based on these past trends, LTC would make another run towards all-time highs, perhaps 400 days or longer after the 2023 halving.
