Litecoin Halving: The Aftermath

The LTC halving occurred on August 4th, 2019 and since then its market price has dropped significantly.

Indeed, LTC’s price has fallen 45.9% from its August 4th price of $92.95 to hit lows of $63.68 on August 31st, 2019.

At writing, LTC’s price is back to where it was on August 31st of last year and investors are bracing themselves for further drops in prices as the bears appear to be taking back control of crypto markets.

They say altcoins follow Bitcoin’s momentum and this is again proving to be true as BTC is also down 25% since August 11th, with the price dropping from $11983 to $9575 on August 31st.

Is it time to panic?

Financial markets are known to be extremely volatile and it is a common strategy for the big investors – the whales in the crypto space – to “take profits” whenever prices reach yearly highs.

Keep in mind that LTC was trading anywhere from $23.67 to $42.70 from November 2018 to February 2019 and reached highs of almost $142 in June 2019. This represents a ROI of almost 500% for the shrewd investors who bought at $23.67 and sold at the peak. Those who were less shrewd and bought at $42.70 still made an impressive ROI of over 230%!

Of course, most of these investors have already cashed out and are patiently waiting on the sidelines for an appropriate point of reentry while everybody else is trying to understand what hit them.

This recent decrease in price could be a normal market correction after months of frenetic bull rampage. In my modest opinion, the risk averse strategy is to HODL and wait for markets to recover; For those with more appetite for risk, the $50-$60 range could be the right time to reinvest. In any case, panic selling at a loss appears shortsighted.

Is LTC dead?

Charlie Lee has often been accused of making statements that negatively influence LTC’s price. This time, he has come under fire for the perceived lack of effort the LTC foundation is putting into developing the coin.

Although these accusations appear well founded, those who are criticizing Lee may simply be preoccupied with short term profits and are understandably underwhelmed by the market’s reaction to the halving.

Remember, investment is a long-term game and the shrewd investor must always look at the big picture and try to ignore the noise that comes from the speculators (day traders).

For memory, in June of 2018 some were claiming that LTC was dead and that the price would drop to $9.60 by December 2019 and $1.44 by 2020!

Although the prediction of $1.44 LTC price in 2020 could theoretically come true, this kind of gut reaction to markets moving opposite of what the author expects generally do not age very well.

Lastly, one needs to consider LTC’s standing in the crypto world and its increasing mainstream marketability. With the ever growing mass appeal of cryptocurrencies, we should remain optimistic about LTC’s long term prospects.

DISCLAIMER: This is not financial advice. Please do your own research before investing in cryptocurrencies or any other financial asset. Bear in mind that cryptocurrency markets are highly volatile and can lead to the loss of part or all of your portfolio. Exercise due diligence and do not blindly follow the advice of people on the internet.

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