- On August 2nd, Tuesday, the long-awaited halving event of the Litecoin blockchain network took place at block 2,520,000.
- Hours after the halving, the price of Litecoin (LTC) dropped by 5.67% and is currently trading at $86.23, with a market value of $6.4 billion.
- Leading investors and analysts in the crypto market are quite optimistic about the Bitcoin halving event that will take place in 2024, around mid-year.
Did the Halving event, eagerly awaited by the Litecoin community, deliver what was expected for the LTC price? Will Bitcoin share the same fate as Litecoin?
Litecoin Price Drops After Halving
Unlike Bitcoin, the latest Litecoin halving did not attract much attention from the investor community. Hours after the halving, the price of Litecoin (LTC) dropped by 5.67% and is currently trading at $86.23, with a market value of $6.4 billion.
On August 2nd, Tuesday, the long-awaited halving event of the Litecoin blockchain network took place at block 2,520,000. This halving event reduced block rewards from 12.5 LTC to 6.25 LTC.
The Litecoin halving emerged as an event of “buy the rumor, sell the news” style. Onchain data provider Santiment states that social dominance has increased and panic symptoms have been observed in many people in the volatile LTC market, amidst the fluctuating LTC market. It appears that patience is challenging during this period of instability.
After its previous two halvings, the price of Litecoin experienced a decline for several months. It dropped by 5.7% on Wednesday. The LTC price rose by 60% from January to early July, reaching $112, but then dropped back to $86.23. During this period, many other cryptocurrencies also experienced significant rallies.
Will Bitcoin Share the Same Fate as Litecoin?
Leading investors and analysts in the crypto market are quite optimistic about the Bitcoin halving event that will take place in 2024, around mid-year. Many analysts say they expect a strong price rally as the Bitcoin halving approaches.
However, considering that the Litecoin halving did not have much bullish market activity, will Bitcoin share the same fate? When looking at the historical performance of Bitcoin during halving events, this possibility seems less likely.
Bitcoin, the largest cryptocurrency worldwide, usually experiences significant price effects during halvings. The price of Bitcoin tends to show an upward trend before and after these events. For example, after the May 2020 halving, the price of Bitcoin experienced a sharp decline after increasing by about seven times within the following year. Moreover, there is significant interest in Bitcoin among the world’s largest asset managers, such as BlackRock.
