H-8 COUNTDOWN: What to expect during the Litecoin (LTC) Halving?

As the Litecoin Halving approaches, excitement is building in the crypto community. Investors and crypto traders are all eager for this major event of the week in the crypto-sphere. Should you prepare for the purchase ? Here’s what to expect during the Litecoin Halving !

The most anticipated event of the week for Litecoin

The crypto-sphere is currently focused on the Halving Litecoin which is fast approaching. This event indeed arouses the interest of investors, miners and crypto traders. According to the nicehash countdown, the event will take place in about 8 hours.

Halving is an integral part of Litecoin’s history. This event is considered an anti-inflationary measure for the value of the token. Indeed, the rewards are reduced with each Halving, and the next reduction is scheduled for 6.25 LTC per block during the 2,520,000th block.

Halving Litecoin: What to expect?

For Litecoin miners, Halving will result in halving their rewards for each block mined. This will have an impact on circulating supply, as the rate of LTC generation will decreasedropping from 12.5 to 6.25 LTC per block.

According to the law of supply and demand, Lower Available Supply Should Drive Litecoin (LTC) Price Up. This, because the relative demand would increase. However, historical data contradicts this logic.

Should you prepare for the purchase?

Looking at the price reactions of Litecoin (LTC) during the previous two Halvings, a purchase does not seem like a good idea. Sure enough, the LTC/USD weekly chart on TradingView shows that the price of LTC did not experience any significant upside immediately after the Halvings.

After the first halving on August 25, 2015, the price of Litecoin (LTC) rose only slightly by 20%, an insignificant long-term gain. Then, during the second Halving on August 05, 2019, LTC even suffered a 50% drop.

Litecoin price experienced volatility for 553 days after the first Halving. On the other hand, it fell by 70% over the 210 days following the second Halving. Significant upsides have usually only been seen after the Bitcoin Halving.

All this data suggests that it is possible to observe movements in volatility on Litecoin after the Halving on Wednesday. To consider a long-term buy position, it will likely be necessary to wait for the next Bitcoin Halving. Nevertheless, this does not prevent the trading of Litecoin (LTC) in the short and medium term after the Halving.