The cryptocurrency market, with the exception of Bitcoin, (BTC) has been falling during the last few days. Litecoin (LTC) has been included in the list of digital assets that lost part of their value. This weak performance of Litecoin comes just a few days before its halving that is expected to take place on August 5. Will the bearish sentiment continue?
Litecoin Falls Before Halving
Halving events tend to be very bullish for cryptocurrencies. As demand for a specific asset grows, with a lower new issuance the price should react and increase faster. This is why Litecoin experienced an important bull run earlier this year, allowing the digital currency to move from $23 to $140 a few months ago.
According to data provided by CoinMarketCap, Litecoin is now the worst-performing crypto among the top 16 digital assets. In the last 24 hours, Litecoin lost 4.18% of its value and it also fell to the fifth position in the market after being surpassed by Bitcoin Cash (BCH).
According to Josh Rager, a recognize cryptocurrency analyst, Litecoin has been in a clear downtrend against Bitcoin while other virtual currencies, for example, LINK, responded well at support.
After the first halving experienced by Litecoin, the digital currency experienced a downtrend that lasted for almost two years between 2015 and 2017. The digital currency was able to recover when the whole crypto market started moving up two years ago.
Litecoin will be halving on August 5. Miners are going to receive 12.5 LTC rather than 25 LTC every time they find a block. Although in the short term Litecoin remains bearish, in the long term, a halving should be very positive for a digital asset. Compared to fiat currencies that are inflationary assets, virtual currencies such as Litecoin or Bitcoin have lower inflation rates every four years, allowing the whole community to benefit from it.
As mentioned before, with an increased demand for a digital asset and a slower issuance of coins, the price of this cryptocurrency should increase. At the same time, Bitcoin is also going to experience a halving in 2020. With the whole crypto market being very bullish about that, these digital assets could start moving upwards in the coming months.
At the time of writing this article, Litecoin has a price per coin of $91.7 and a market capitalization of $5.77 billion.
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