Litecoin Halving in T minus 4 Days
August 5th
Four days from today, Litecoin will go through its halving, a fixed event that occurs every 4 years after 840,000 blocks are mined, which will reduce block rewards by 50%. The mining reward is currently set at 25 litecoins ($2500 per block) and will drop to 12.5 LTC on Aug 5. As the date nears, it is still unclear how LTC will trade.
Halvings typically result in a “pre-halving pump”, in which the price of the crypto spikes, which did appear to occur for LTC at the start of 2019 but since then, LTC has been in a strong downtrend. A much needed breakout could be a strong buy signal for Litecoin.
Litecoin
Litecoin, which is the 4th largest digital currency by market cap and has been compared to as “the silver to Bitcoin as digital gold“, it is among the first-ever cryptocurrencies, and its longevity has earned it a top spot in the crypto market top ten throughout much of its existence.
The crypto asset often leads rallies and can be an indicator of overall market sentiment. It was the Altcoin that helped the rest of the market find a bottom in December 2018, and outperformed Bitcoin throughout 2019, bringing investors 600% returns at its peak before it fell to the current price range.
Downtrend
Despite rallying around a low of $70USD to the current high of $100, LTC has yet to break out of its current downtrend since June’s high of $140. Not even Litecoin’s halving being a mere 4 days away and counting has been enough to cause buying to overcome the bearish selling pressure across the crypto market.
The limited pre-halving hype left may not be enough to break the downtrend. Alternatively, the halving itself throwing off supply and demand may end up being what causes the breakout, and the buy signal LTC investors are waiting for
Supply & Demand
According to Litecoin creator, Charlie Lee, this should help the dipping of the cryptocurrency’s value.
“In terms of the price, the halving should be priced in because everyone knows about it since the beginning. But the thing is people kind of expect the price to go up. So a lot of people are buying in because they expect the price to go up and that is kind of a self-fulfilling prophecy.So, because they are buying in, the price does actually, go up.
Charlie Lee
Litecoin Creator
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