Litecoin halving in 13 days — Where is the LTC price rally?

Litecoin halving in 13 days — Where is the LTC price rally?

The Impact of Block Reward Halving on Litecoin Miners and Bitcoin Forks

Bitcoin (BTC) and Litecoin (LTC) are two prominent cryptocurrencies in the blockchain industry. Bitcoin, being the pioneer, has a scheduled block reward halving event that occurs approximately every four years. However, Litecoin, often considered as the silver to Bitcoin’s gold, has its own halving event, which is now just around the corner. In less than two weeks, Litecoin’s block subsidy will drop from 12.5 LTC to 6.25 LTC per block. This reduction is expected to have significant implications for Litecoin miners.

Whales Stock Up on LTC, but BTC Value Stays Weak

Despite its fair share of controversy, Litecoin remains the 12th largest cryptocurrency by market cap, valued at around $6.8 billion. Currently, Litecoin miners receive 7,200 LTC in block rewards daily, equivalent to a U.S. dollar value of approximately $670,000. As the halving approaches, major investors, commonly referred to as “whales,” are taking advantage of this event by buying up large quantities of LTC. In the past two days alone, these whales have accumulated nearly $60 million worth of LTC.

While this surge in buying activity may seem promising for Litecoin, when considering its value against Bitcoin, the situation appears less favorable. Litecoin is currently trading near all-time lows against Bitcoin, a trend that has persisted over the years, regardless of previous halving events. As of July 19, the LTC/BTC trading pair sits at 0.0031, with its historical low of 0.0017 occurring in June 2022. To put this into perspective, at one point in time, 1 LTC was worth as much as 0.052 BTC, equivalent to $1,560 today.

LTC/BTC 1-month chart

Moreover, Litecoin’s all-time high in USD occurred in May 2021 when it traded at over $400 per token, compared to its current value of $93. These figures highlight the challenges Litecoin faces in maintaining its value relative to Bitcoin.

Little Consolation for Bitcoin Forks

While Litecoin’s struggle against Bitcoin is evident, it is worth noting that it is not the worst performer among Bitcoin forks. Bitcoin Cash (BCH) and Bitcoin SV (BSV) have also experienced significant declines against Bitcoin throughout their existence.

Bitcoin Cash, which emerged as a result of a hard fork from Bitcoin, reached its all-time low in BTC last month. Despite a slight recovery, it currently trades at just 0.00817 BTC, representing a staggering 98% decrease from its all-time high of 0.432 BTC.

BCH/BTC 1-month chart

Similarly, Bitcoin SV, another fork from Bitcoin, has also faced significant challenges. Despite a bounce from its record lows in June, it currently trades at 0.00124 BTC, which is 98% below its all-time high.

BSV/BTC 1-month chart

These examples demonstrate the difficulties faced by Bitcoin forks in maintaining their value relative to Bitcoin itself. The market’s preference for Bitcoin as the leading cryptocurrency is evident, as forks struggle to gain traction and maintain their worth.

In conclusion, the upcoming block reward halving in Litecoin presents challenges and opportunities for miners and investors alike. While major investors are accumulating LTC in anticipation of potential gains, the value of Litecoin against Bitcoin remains weak. This weakness is not unique to Litecoin, as other Bitcoin forks, such as Bitcoin Cash and Bitcoin SV, face similar struggles. The dominance of Bitcoin in the cryptocurrency market continues to overshadow its counterparts, emphasizing the importance of Bitcoin as the network of choice for investors and users in the blockchain industry.