Hours after halving, the Litecoin (LTC) price tanked by 5.67% and is currently trading at $87.44 with a market cap of $6.4 billion.
Unlike Bitcoin, the most recent Litecoin halving did not elicit significant investor interest. Hours after the halving, the Litecoin (LTC) price dropped by 5.67 percent to $87.44, with a market capitalization of $6.4 billion.
On Tuesday, August 2, the long-awaited halving event block 2,520,000 occurred on the Litecoin blockchain. This event halves the previous block rewards of 12.5 LTC to 6.25 LTC.
The Litecoin halving proved to be an instance of “buy the rumor, sell the news” Santiment, an on-chain data provider, observes that social dominance has increased amidst the volatile $LTC market, causing widespread panic. During this period of instability, it is not easy to exercise patience. A powerful trader capitulation is what has been observed recently.
After each of its two previous halvings, Litecoin’s price encountered several months of decline. On Wednesday, the price declined 5.7%. The token’s price rose by approximately 60% between January and early July, surpassing $112, but has since reduced to $87.62.
However, many other digital currencies experienced significant price increases during this period. A trader at Arca, Kyle Doane, stated to Bloomberg:
“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 Follow in The Footsteps of Litecoin?
Investors and leading crypto market analysts are optimistic about Bitcoin halving in mid-2024. As the Bitcoin halving approaches, many analysts anticipate a significant price increase.
With Litecoin’s halving not proving to be a significantly more favorable event, will Bitcoin suffer the same fate? This outcome appears less probable, considering Bitcoin’s performance during previous halving events.
Bitcoin, the most popular cryptocurrency on the planet, typically experiences significant price fluctuations during its halvings. Before and after these events, the price of Bitcoin tends to increase.
For instance, after the halving in May 2020, the price of Bitcoin increased approximately sevenfold in the subsequent year before experiencing a precipitous decline. In addition, the world’s largest asset managers, such as BlackRock, have a significant interest in Bitcoin.
