Yesterday, the third halving of Litecoin (LTC) took place, revealing Block 2,520,000 and reducing its rewards from 12.5 LTC to 6.25 LTC. Interestingly, this wasn’t accompanied with the expected upward price movement that usually follows halving events. Rather, the cryptocurrency slumped 5.9% in the last 24 hours and has since fallen 20% in the last 30 days. To understand this trend, many attributed it to various macroeconomic factors influencing the crypto industry such as an upcoming interest rate hike or the release of job data. This begs the question whether or not the halving has simply assumed yet another “sell the news” narrative as seen happen with Ethereum’s Proof-of-Stake consensus method earlier this year.
Progressing from here, signs point to the likelihood of a potential LTC growth spurt at some point in the future hinting at 2024 as a high potential for entering a bull run. Prior to the halving event, Litecoin enjoyed a nice price boost of just over seven percent, spiking as high as US$95.2. Unfortunately, this was short-lived as the upswing disappeared leaving valuations under its pre-halving point. Reviewing historical data, signs do not typically hint towards rallies directly following halving events, yet speculations lean towards later one to two year timeline to see any substantial market surge.
These contemporary reports emphasize the unpredictability and dynamicity that cryptocurrency investors find themselves navigating. Furthermore, these same factors extend to governmental administrations such as the U.S Federal Reserve noting its potentially imminent execution of another rate hike.
