Litecoin Plunges 6% to Fresh Monthly Lows on Halving Day

Historically, LTC has tended to peak ahead of its halving event, at which miner rewards are slashed by 50%.

LTC daily price (CoinDesk)

The decline followed Litecoin’s third halving in its history since 2011. The event happens roughly every four years – similar to Bitcoin halvings – and cuts the rewards for miners in half, curbing the issuance of new tokens. In crypto circles, LTC is often referred to as digital silver, akin to BTC’s digital gold nickname.

However, LTC’s price performance of around halvings differs from BTC’s behavior. Whereas bitcoin has tended to move higher following halvings, the past two occasions for litecoin has seen that crypto peak prior to the event and then sliding lower for months afterward.

“Litecoin’s halving cycle has been one of anticipation, where it troughs and peaks ahead of its halving event,” Greg Cipolaro, global head of research at digital asset investment firm NYDIG, wrote in a report last week. “This is opposed to bitcoin, which has peaked well after its halving in its cycles.”

Litecoin halvings and LTC price (NYDIG)

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In prior halving years, LTC hit a top about four to six weeks ahead of the event, then declined into the halving and found a bottom after, Cipolaro explained.

The token this time surged to as high as $112 on July 3, reaching its highest price for the year roughly one month before the halving. It’s down 22% since.

Edited by Stephen Alpher.

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Krisztian Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

Follow @sndr_krisztian on Twitter

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