What will happen to the Litecoin rate before the halving in August
The next halving of the Litecoin cryptocurrency, after which the miners’ reward for the mined block will be reduced from 12.5 LTC to 6.25 LTC, will take place on August 3. On the eve of this event, the rate of digital assets traditionally begins to rise – for example, this constantly happens with bitcoin. What to expect before the halving of the LTC price and what the market will observe further?
Halving is a halving of the speed of generating new cryptocurrency units. With its help, the rate of creation of new coins is regulated. After this event occurs, the miner’s reward for the mined block of cryptocurrency decreases. LTC halving occurs every 840 thousand blocks, in the entire history of the existence of this cryptocurrency, it has already happened twice – in 2015 and 2019. The first time block mining reward was reduced from 50 LTC to 25 LTC, and the second time – to 12.5 LTC.
And every time, shortly before the next halving, the value of Litecoin went up sharply, and then a rather significant drop was observed. Before the halving in 2015, the market value of LTC jumped more than 5 times, and in 2019 – more than 4 times. After that, a sharp decline in the exchange rate began – in 2019, after reaching the mark of 143 dollars, Litecoin subsequently fell to 40 dollars.
Now, Litecoin is holding the mark of 90 dollars, since the beginning of this year, the price growth has already exceeded 60%, and this is not yet the limit. At the moment, it has slightly moved away from the local maximum of $104, which it reached in April of this year, but is preparing for a new jump. The market capitalization of LTC at the moment has reached the mark of 6.4 billion dollars, according to this indicator, the cryptocurrency ranks 12th among all digital assets in the world.
Growth on expectations
It is quite likely that even this year, on the eve of the halving, Litecoin will be able to show a good price increase, despite the fact that the general situation on the crypto market as a whole remains quite tense. It is not excluded that in the near future the price of LTC can overcome the mark of 100 dollars, and then even go to the level of 150 dollars. True, after the halving takes place, the exchange rate is likely to decrease — up to 100 dollars and below. Probably, at the end of August-September, the market value of LTC will return to the level of 80-90 dollars. Thus, the rise will be very limited in time, but at the same time it can bring profit to those investors who will be able to take advantage of the situation.
How to use halving?
To get a profit on halving, you can, for example, invest in this asset in advance, and then sell it at a higher price in Libertex. It is also possible to carry out the reverse operation – sell it when this asset increases, and then buy it after it decreases.
Source: Ministry of Finance