Light Shed on Litecoin’s Performance
While Bitcoin and Ether present a relatively stable market scene, analysts suggest turbulent times may be on the horizon due to future events such as BlackRock’s Bitcoin ETF application decision and Bitcoin’s halving event next year. Amidst this, Litecoin has made headlines due to its halving event and subsequent market behavior.
The much-anticipated halving event took place, after which Litecoin experienced quite a significant drop, marking the largest drop among the top ten cryptocurrencies. This is contrary to the usual effect of Bitcoin’s halving events, which generally have a positive impact on price. Following the event, Litecoin fell below the $87 mark and presented a near 7% drop.
A large deposit made by a Litecoin whale to Binance may further contribute to the cryptocurrency’s current decline. At the time of the halving completion, Litecoin was around $91, but after the sell-off that followed, the coin fell to $86. This signals a plunge of over 5%.
Top crypto analyst Benjamin Cowen issued a warning about Litecoin’s market behavior after the halving event while offering a perspective on Bitcoin’s outlook. He pointed out that Litecoin tends to peak in June/July, a few months before its halving year, and then experiences a decline into the halving.
Mining Operations on Hiatus
Global cryptocurrency exchange platform, KuCoin, recently announced the suspension of its Bitcoin and Litecoin mining pools, somewhat shaking the crypto market. The exchange’s reason for suspension points towards business restructuring in order to maintain its competitive stance in the industry.
KuCoin suggested users transition to alternative mining pools before the given deadline to avoid interruption in their earnings. The Bitcoin and Litecoin mining pools at the exchange are considered high-achievers, with hash rates of 9.08 exahashes per second and 3.90 terrahashes per second respectively.
Looking Forward
For now, the crypto market keeps a keen eye on Litecoin’s performance post-halving. Some crypto enthusiasts even speculate Litecoin is gearing up to surpass Bitcoin regarding the number of BitPay transactions, pointing to an impressive jump in LiteCoin’s usage in retail products in July 2023. Nevertheless, the results of Litecoin’s halving event have led to a significant bearish effect on its price, raising questions about its future market performance.
Please share your thoughts on Litecoin’s future prospects and recent market performance in the comment section below.
