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Unlike Bitcoin, the most recent Litecoin halving didn’t garner a lot curiosity from the investor group. Hours after halving, the Litecoin (LTC) worth tanked by 5.67% and is presently buying and selling at $87.44 with a market cap of $6.4 billion.

On Tuesday, August 2, the Litecoin blockchain community lastly underwent the much-awaited halving occasion block 2,520,000. This halving occasion 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” sort of occasion. On-chain knowledge supplier Santiment notes that amid the risky $LTC market, social dominance has surged, inflicting indicators of panic amongst many. Patience throughout this era of instability is proving to be difficult. A powerful dealer capitulation is what we’ve got been seeing off currently.

After every of its prior two halvings, Litecoin’s worth skilled drops for a number of months. On Wednesday, it fell by 5.7%. While the token’s worth had risen about 60% between January and early July, reaching over $112, it has since slid again to $87.62. During this era, nonetheless, many different digital currencies additionally skilled vital rallies. Speaking to Bloomberg, Kyle Doane, a dealer 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 high analysts of the crypto market are fairly optimistic concerning the Bitcoin halving subsequent yr in mid-2024. Many analysts are bullish {that a} sturdy worth rally awaits as we method the Bitcoin halving.

However, with Litecoin halving not turning out to be a way more bullish occasion, will Bitcoin meet the identical destiny? Looking at Bitcoin’s historic efficiency in the course of the halving occasions, this final result appears much less possible.

Bitcoin, the most important cryptocurrency globally, normally experiences vital worth impacts throughout its halvings. Before and after these occasions, Bitcoin’s worth tends to rally. For occasion, after the May 2020 halving, the worth of Bitcoin surged roughly seven occasions within the following yr earlier than experiencing a pointy drop. Furthermore, there’s a powerful curiosity in Bitcoin among the many world’s largest asset managers comparable to BlackRock.

Bhushan is a FinTech fanatic and holds aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is repeatedly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and generally discover his culinary expertise.

The introduced content material might embrace the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty to your private monetary loss.