The halving of the reward to Litecoin miners on Wednesday, August 2, led to a 5% drop in the “digital silver” exchange rate. But according to Benjamin Cowen, the Litecoin exchange rate may continue to decline and this will become a long-term trend. The analyst presented a chart showing that the LTC exchange rate typically rises about two months before halving, and after that there is about a year-long decline in the cryptocurrency.
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“History shows that it’s worth tempering your expectations for LTC until at least next year, and preferably 2025. In addition, there is an outflow of funds from altcoins to bitcoin, which does not add to Litecoin’s strength either. Total market capitalization did not change much in 2023. Since altcoins have been declining as bitcoin capitalization has increased. Bitcoin’s market dominance has grown from 39% to 49%,” Cowan noted.
Analyst warns: August may not be a good month for bitcoin. The specialist supports his opinion with the historical performance of the first cryptocurrency before the next halving.
Earlier, analyst Michel van de Poppe said that after Litecoin’s halving we should expect the coin’s rate to rise.