Litecoin (LTC), the cryptocurrency that powers the payments-focused Litecoin blockchain, is consolidating in the $91 area just above its 50 and 100-day moving averages, both of which reside around $89.50.
The Countdown Is On For Litecoin Traders next stop The event, which is now just 70 days away.
litecoinblockhalf.com points out that, “as part of Litecoin’s Following the coin release, miners are rewarded with a fixed amount of Litecoin each time a block is produced (approximately every 2.5 minutes).
“When Litecoin First introduced, 50 Litecoin per block is rewarded to miners … (and) after every 840,000 blocks mined (approximately every 4 years), the block reward is halved and will continue to be halved until until the block reward per block becomes 0 (approximately until the year 2142)”.
Right now, the block reward is 12.5 LTCWhich will soon reduce to 6.25 LTC.
Whereas Litecoin’s Previous halvings are not necessarily as bullish events as the halving for bitcoin, the reduction in LTC inflation rate should still prove positive for LTC in the long run.
Out of a total of 84 million LTC tokens that could ever exist, just under 73 million have been mined, which is approximately 86.7% of the supply.
This means that the upcoming halving event will drop the inflation rate of LTC from around 3.67% to around 1.8%.
Price Prediction – Where to Next for Litecoin (LTC)?
Litecoin’s technical set-up is looking good for a continuation of the short to medium term uptrend.
LTC’s second recovery below the 200 DMA earlier this year shows investors are willing to buy the dip and recovery from earlier monthly lows also confirms long term bullish momentum from November lows Is.
Meanwhile, Litecoin has also managed to rise above its other key moving averages, with a retest of yearly highs north of $100 per coin on the cards.
Litecoin has been able to mitigate the macro headwinds (rising US dollar and US yields) that have weighed on bitcoin and other cryptocurrencies so far this month, as strong US data pushed back against US bearish bets and Fed policy. Manufacturers have pushed back against the rate cut. Expectations.
Time will tell if further hype surrounding the upcoming halving event and technical buying continues to support Litecoin’s price, but it seems like a good possibility, with futures open interest in the cryptocurrency recently peaking at the end of 2021. has reached its highest level since.
Can Litecoin (LTC) Reach $1,000 in 2023?
With the cryptocurrency markets entering the early stages of a new bull run, investors are wondering what price levels they should target for the coming years.
Some Litecoin bulls may be hoping for the cryptocurrency to join the club of $1,000 per coin or above in 2023 — at the moment, there are only two cryptocurrencies in this exclusive club, bitcoin and ether.
However, this would require Litecoin to trade 10x from current levels within about seven and a half months.
It should not be dismissed as impossible.
Between November 2020 and May 2021, Litecoin posted nearly 8x gains, rising from around $55 to over $410 per coin.
But it coincided with a massive run-up in broader crypto prices, fueled by zero interest rates, massive fiscal stimulus and rapid reopenings, as well as an economic rebound fueled by crypto as an asset class. Driven by a sudden surge in institutional interest in
While it can be strongly argued that the trend of more and more social and institutional investors adopting crypto technology and crypto as an asset class continues, those other economic conditions will likely not hold for 2023.
Yes, the Fed is likely to hold off on raising its interest rates and may cut some rates this year, meaning the macro should no longer be as massive a headwind as it was in 2022 when the Fed was aggressively targeting inflation. To bring it under control, it was raising interest rates.
But Litecoin bulls should tone down their optimism about reaching $1,000 this year.