Less than 30 days until halving Litecoin; Time to buy LTC?
The Litecoin halving event, which happens once every four years, is scheduled to take place in about 25 days, around August 2. Many digital currency investors are counting down the moment for this event and the possible jump after it; While the price trend of Litecoin in the time periods after the previous halvings shows something contrary to this expectation.
According to AruzDigital, Litecoin halving will be done in less than a month in block number 2,520,000 of this network and will reduce the mining reward of each block from 12.5 to 6.25 LTC.
Since the beginning of 2023 and approaching this event, many digital currency investors have thought of buying Litecoin with the hope that the price will increase under the influence of this year’s halving (August). Litecoin has increased in price by about 40% from the beginning of 2023 until today, and recently experienced its 14-month price peak at $115 on July 3.
On-chain data related to the Litecoin network shows that the number of addresses holding $1 million or more in LTC has been increasing over the past 5 months.
The data available in the analytical platformIntoTheBlockIt also shows that at current prices, 66% of Litecoin holders are in profit.
Overall conditions look in favor of Litecoin’s continued bullish trend going forward, and the upcoming halving is essentially considered a long-term bullish factor. However, historical data shows that LTC’s price response to previous halving events in 2019 and 2015 has not been positive.
For example, the previous halving of Litecoin occurred on August 5, 2019 (14 August 2019) and when the digital currency market entered another bearish wave after a partial recovery of prices from the long-term downward trend of 2018, which continued until the beginning of 2020. had
As you can see from the chart below, the halving at that time not only did not have a positive effect on the price of LTC, but after that the price was practically stuck in a downtrend until the beginning of 2020.
This issue also applies to the first halving in the history of Litecoin, which occurred in 2015. At that time, the volume of transactions was much less compared to today, and this greatly affects the validity of these data. However, what is clear from the chart is that after the 2015 halving Litecoin has not experienced a clear and sustained price jump and the LTC market has been largely neutral for a long time.
Forecasting the future based on historical data, even in a market that has less than 15 years of history, does not seem reasonable to many analysts, and this year’s digital currency market conditions have significant differences from the previous periods in 2019 and 2015. However, in general, if you are thinking of buying Litecoin on the eve of the upcoming halving, keep in mind that there is no guarantee that the LTC market will immediately enter an upward phase after this event, and it may even be the opposite for various reasons. to fall