Halving for the world’s fourth-largest cryptocurrency, Litecoin (LTC) occurred today Aug. 5. Litecoin halving is a process that is built into Litecoin’s code. It is a fixed event that takes place every four years after 840,000 blocks are extracted. The process cuts the block reward by half.
Halvings are historically bullish
Following today’s Litecoin’s halving, the coin saw a significant rebound, allowing its price to surge by more than 10%, hence bringing the price up to above the $100 mark. The price surge means Litecoin price is reacting favorably to the event. According to technical analysts and industry experts, such halvings are historically bullish. This is due to the fact that they restrict mining of new coins in order to keep Litecoin’s inflation in check. That sudden drop can discourage miners who operate with low-profit margins. As a result, the supply declines, increasing the price of the cryptocurrency. Similar to Bitcoin, the deflationary nature of the whole process makes LTC an ideal digital coin to hold.
At the time of writing, Litecoin is trading hands at $101. The past 24 hours alone saw the Litecoin price soar by more than 14% while the gains posted by Bitcoin – the top-ranking cryptocurrency, were close to 10%. The majority of the gains came immediately after the halving. However, the coin has lost almost 25 percent of its total value in the recent month following a strong growth during the 2nd and 3rd quarter of 2019.
What does history tell us?
It is worth noting that in previous halving events, both BTC and LTC haven’t witnessed any major price reduction or a surge in value immediately after the events. Even so, Bitcoin experienced a gradual spike in prices after the halving. But it is worth remembering Bitcoin went through long bear cycles after these remarkable bulls. So Litecoin recent spike could be reminiscent of the price action seen in 2015.
coindoo.com is author of this content, TheBitcoinNews.com is is not responsible for the content of external sites.
TheBitcoinNews.com is here for you 24/7 to keep you informed on everything crypto. Like what we do? Tip us some BAT
Send Tip now!