LTC Price Halves After Litecoin Halving
Just like the rest of the cryptocurrency market, the Litecoin price has been absolutely slammed over recent weeks. As of the time of writing this, LTC has collapsed to $55, trading 3% lower than what the cryptocurrency was at 24 hours ago.
While a 3% loss isn’t something notable per se, once you put Litecoin’s performance into a long-term perspective, it surely is a horrendous sight. As Ceteris Paribus, a cryptocurrency analyst, pointed out, Litecoin is now 50% lower than it was when it saw its block reward reduction — also known as a “halving” or “halvening” — in August.
So not only did Litecoin’s inflation rate halve but its price did as well.
This harrowing price trend goes against the community’s sentiment that halvings drive up the price of cryptocurrencies. You see, halvings are a negative supply shock to the market of a cryptocurrency, and should thus lead to an appreciation in price if demand for said digital asset grows.
✅ Halving complete
— Ceteris Paribus (@ceterispar1bus) September 26, 2019