As Litecoin Halving Nears, Analysts Fear Bearish LTC Scenario - What is coming ?
Litecoin is expected to gradually become scarcer in the market due to the halving that will take place on the 5th.
A rule incorporated into the litecoin code (LTC) is set to reduce rewards soon for miners who today guarantee transaction processing on the world's fourth largest blockchain in full value.
Litecoin Drops as Halving Hype Fades
At the time of writing, Litecoin is trading down just under 1% at its current price of $95.20 and is down slightly from daily highs of over $97.
While zooming out and looking at Litecoin’s price action over a longer time frame, it is clear that the cryptocurrency is not being bolstered by the imminent halving, as it is currently down from its late-June highs of over $140.
Today is the Litecoin Halving - What is This And Why Should You Care? rewards will be "cut" in half
Today litecoin will undergo a scheduled change to halve its reward - a process aimed at preserving the purchasing power of cryptocurrency. The mining reward is currently 25 litecoins ($ 2,500) per block and will fall to 12.5 litecoins ($ 1,200) per block on August 5.
With this transition, the protocol will be adding significantly less litecoins to the market after August 5th.
A reduction in inflation is great in any market. Restricting the supply of an asset really does change the dynamics of the market over a longer period of time and this will be the same case for Litecoin when the block reward halves again in 9 days time.
What Is A Halving?
No, the Litecoin network is not splitting in half! What is actually happening is the reward that the miners receive for securing the network, currently set at 25 LTC per block, will reduce by a drastic 50% - hence the use of the halvening. This means that the influx of LTC currently entering the ecosystem will see a 50% reduction - 50% fewer coins are now entering the supply of the market as before.
The Litecoin block halving is scheduled for block number 1,680,000 which is expected to be mined on August 5 2019. The block reward is set to be halved every 840,000 blocks and this is coded into the software from launch.
So What Happens During The Halving?
Well, opinions are greatly mixed on this topic. Many people believe that this should help the price rocket in the run up to the halving. However, other experienced players within the market actually believe that the value derived from the halving is actually already priced into the market. Why would it not be? We all knew about the halving ages ago as the block number has always been set.
The first block reward halving for Litecoin took place way back in 2015 at block 840,000 when the reward was cut from 50 LTC to 25 BTC. In the month before the halving was expected, Litecoin saw an epic price surge totalling 400% as it increased from around $1.70 to around $8.00. However, in the two months following the halving, the price of Litecion dumped by a total of 75%.
What is next ?
Litecoin (LTC) is currently less than 1 day from its halving event, which has been widely viewed as a bullish event.
Nonetheless, analysts are noticing that Litecoin investors may be seriously disappointed by the cryptocurrency price action in the coming days and weeks, as it has already faced significant selling pressure after the halving event was announced. The fact is that looking at the prices of Litecoin these days, it is clear that the market is not pricing the crypto.
At the time of this writing, Litecoin is trading below 1% at its current price of $ 93.96 and is slightly below daily highs of over $ 97.
As we zoom out and watch Litecoin's price action over a longer period of time, it is clear that cryptocurrency is not being reinforced by the impending reduction as it is below the $ 140 recorded at the end of June. With analyzes made by Cryptowatch.
As the halving draws closer, it is highly probable that analysts and investors alike will soon discover whether or not the event will truly be a bullish catalyst, or if the hype will fade and leave a trail of bag holders in its wake.
Halving from Litecoin is coming, understand the risks
Litecoin mining will go through a delicate moment in the coming weeks. As assets work with demand and supply, the market may take a few days to adjust the price of the digital currency. Such a situation happens because with Litecoin halving, the reward obtained for each mined block will be cut in half. With prices fluctuating, mining may not be a profitable activity.
With the payoff being lower, it is estimated that for a few days, miners could be harmed. In addition, shared mining of Litecoin with Dogecoin was presented as a solution. However, this option does not convince everyone.
For analyst Josh Rager, Litecoin halving is not of interest to traders. Their analysis also said that at the moment, the best altcoin to stay on Bitcoin is Link. Such a situation is because Litecoin would be in a downtrend and impossible to maintain its value against Bitcoin.
For the taller analyst, Litecoin could have some rough months if history repeats itself. Such a justification would be that in the last halving of Litecoin prices certainly rose, but before the event. After the break in the bounty, prices were greatly devalued.
Some traders are still optimistic about a Litecoin appreciation
TradingView's Twitter profile asked last August 2 if Litecoin could reach up to $ 120. Currently Litecoin (LTC) price is around $ 94.
In response, some users said they believed in a Litecoin pump. The TradingView profile then responded that the price may rise.[
And you ? will take the risk ? marlians