Unlike Bitcoin, the most recent Litecoin halving did not garner a lot curiosity from the investor group. Hours after halving, the Litecoin (LTC) value tanked by 5.67% and is at present buying and selling at $87.44 with a market cap of $6.4 billion.
On Tuesday, August 2, the Litecoin blockchain community lastly underwent the much-awaited halving occasion block 2,520,000. This halving occasion reduces the block rewards from 12.5 LTC to now at 6.25 LTC.
The Litecoin halving proved to be a “buy the rumor, sell the news” sort of occasion. On-chain knowledge supplier Santiment notes that amid the unstable $LTC market, social dominance has surged, inflicting indicators of panic amongst many. Patience throughout this era of instability is proving to be difficult. A powerful dealer capitulation is what we’ve got been seeing off currently.
After every of its prior two halvings, Litecoin’s value skilled drops for a number of months. On Wednesday, it fell by 5.7%. While the token’s value had risen about 60% between January and early July, reaching over $112, it has since slid again to $87.62. During this era, nevertheless, many different digital currencies additionally skilled vital rallies. Speaking to Bloomberg, Kyle Doane, a dealer at Arca said:
“Long LTC was somewhat of a crowded trade at the beginning of the year when the narrative was in focus. Since then, the LTC narrative faded as the market shifted focus to the slew of spot BTC ETF applications.”
Will Bitcoin Meet the Same Fate As Litecoin?
Investors and high analysts of the crypto market are fairly optimistic concerning the Bitcoin halving subsequent 12 months in mid-2024. Many analysts are bullish {that a} robust value rally awaits as we strategy the Bitcoin halving.
However, with Litecoin halving not turning out to be a way more bullish occasion, will Bitcoin meet the identical destiny? Looking at Bitcoin’s historic efficiency through the halving occasions, this consequence appears much less doubtless.
Bitcoin, the most important cryptocurrency globally, often experiences vital value impacts throughout its halvings. Before and after these occasions, Bitcoin’s value tends to rally. For occasion, after the May 2020 halving, the value of Bitcoin surged roughly seven instances within the following 12 months earlier than experiencing a pointy drop. Furthermore, there’s a powerful curiosity in Bitcoin among the many world’s largest asset managers equivalent to BlackRock.
The offered content material could embody the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability in your private monetary loss.
