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Litecoin's price has been on a downward spiral for the fifth consecutive day, reaching a new low for the month of July. This development may have caught some investors off guard, but not Benjamin Cowen, a crypto expert who accurately predicted this scenario at the beginning of the month. Cowen, who meticulously analyzed LTC's price history, identified a concerning pattern surrounding the halving event.
Tomiwabold OlajideHistorically, during the months of June and July of each halving year, Litecoin's price has seen a significant surge, reaching its local peak. This time was no different, as the price soared to $114.93 per LTC on July 3, just a day before Cowen's prescient tweet.
Update:
— Benjamin Cowen (@intocryptoverse) July 18, 2023
So far, #LTC is fading into its halving, just as it always has. https://t.co/vzlQI8MPqG pic.twitter.com/W7io8axTi3
The phenomenon of LTC halving, which occurs every four years, is a highly anticipated event within the crypto community. It involves a 50% reduction in mining rewards, leading to potential supply scarcity and increasing demand.
Yin and yang
With Litecoin halving due to take place on Aug. 4, there are growing concerns that the current downward trend may persist. While it is theoretically plausible for LTC's price to get a temporary respite if market conditions favor it, predicting a break of the recent local peak appears unwise.
If we try to look at the situation optimistically, believing that the glass is half full, then we can say that every such peak in the past was always beaten, and Litecoin's price grew after the halving. The important thing is just how long "after" is.
Alex Dovbnya
Valeria Blokhina
Vladislav Sopov
Dan Burgin
U.Today Editorial Team