Litecoin (LTC) Price Tanks After Halving, Will Bitcoin Meet Same Fate in 2024?
Unlike Bitcoin, the latest Litecoin halving failed to garner much interest from the investor community. 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.
On Tuesday, August 2, the Litecoin blockchain network finally underwent the much-awaited halving event block 2,520,000. This halving event reduces the block rewards from 12.5 LTC to now at 6.25 LTC.
The Litecoin halving proved to be a “buy the rumor, sell the news” kind of event. On-chain data provider Santiment notes that amid the volatile $LTC market, social dominance has surged, causing signs of panic among many. Patience during this period of instability is proving to be challenging. A strong trader capitulation is what we have been seeing off lately.
After each of its prior two halvings, Litecoin’s price experienced drops for several months. On Wednesday, it fell by 5.7%. While the token’s price had risen about 60% between January and early July, reaching over $112, it has since slid back to $87.62. During this period, however, many other digital currencies also experienced significant rallies. Speaking to Bloomberg, Kyle Doane, a trader at Arca said:
“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 Meet the Same Fate As Litecoin?
Investors and top analysts of the crypto market are quite optimistic about the Bitcoin halving next year in mid-2024. Many analysts are bullish that a strong price rally awaits as we approach the Bitcoin halving.
However, with Litecoin halving not turning out to be a much more bullish event, will Bitcoin meet the same fate? Looking at Bitcoin’s historical performance during the halving events, this outcome seems less likely.
Bitcoin, the largest cryptocurrency globally, usually experiences significant price impacts during its halvings. Before and after these events, Bitcoin’s price tends to rally. For instance, after the May 2020 halving, the price of Bitcoin surged approximately seven times in the following year before experiencing a sharp drop. Furthermore, there’s a strong interest in Bitcoin among the world’s largest asset managers such as BlackRock.
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
