Bitcoin is up over 100% this year. Part of the reason is because Bitcoin is halving in May of 2020. Bitcoin Halving is where the number of generated Bitcoin rewards per block is cut in half making the supply and demand of bitcoin a bit more imbalanced. Meaning the less Bitcoin available, the more demand there is for bitcoin, thus the higher price. And usually prior to the halving, 12 months in advance, the Bitcoin price tends to move higher in anticipation of the event.
Litecoin is currently trading at a new 2019 high and the highest it has been since June 2018.
The current momentum is likely coming from the halving event which is predicted to occur on August 6, just 73 days away. The block mining reward halves every 840,000 blocks, and this one will see it decrease from 25 to 12.5 coins. This effectively increases scarcity and decreases inflation – a Litecoin becomes more valuable. Investors can see this supply drop correlate with an increase in demand which will drive price action.
Bull runs usually occur before halving events and with just ten weeks to go this one could send LTC even higher.
So high how can we expect Litecoin to move up in the coming months, the chart suggests price will breached the daily demand at $103 and move higher to at least the daily demand at $137?
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.