Wednesday, February 28, 2024

Litecoin Price Prediction as Halving 70 Days Away – Can LTC Cross $1,000 in 2023?

The cryptocurrency Litecoin (LTC), which powers the payments-focused Litecoin blockchain, is consolidating above $91; this price is barely above its 50- and 100-Day Moving Averages, which both lie close to $89.50.

Litecoin traders keep track of the remaining days until the upcoming halving event, which will take place in just 70 days.

According to Litecoinblockhalf.com, “as part of Litecoin’s coin issuance, miners are rewarded with a specific number of litecoins whenever a block is produced (roughly every 2.5 minutes)”.

“When Litecoin first launched, miners were rewarded with 50 Litecoins per block… The block payment also halves once 840,000 blocks are mined (about every four years) and keeps splitting until there is no block reward (roughly by the year 2142).

The block reward is 12.5 LTC at the moment. However, it will shortly drop to 6.25 LTC.

Even while Litecoin’s previous halvings weren’t always as bullish as they were for Bitcoin, a slower pace of LTC inflation should still work in LTC’s favor over the long term.

Just under 73 million of the 84 million LTC tokens that could exist have been mined, or around 86.7% of the available supply.

As a result, the inflation rate for LTC will decline from about 3.67% to about 1.8% during the impending halves event.

Price Prediction: Where Will Litecoin (LTC) Go From Here?
The technical situation for Litecoin is favorable for a continuation of the short- to medium-term uptrend.

LTC’s recovery from below its 200DMA earlier this month confirmed a long-term rise from the lows in November, which was the stock’s second such recovery this year.

Meanwhile, a retest of annual highs to the north of $100 per token appears to be in the cards since Litecoin has also managed to get back above its other key moving averages.

Strong US data have pushed back against US recession bets, and Fed policymakers have pushed back against predictions for rate cuts, allowing Litecoin to withstand macro headwinds (a rising US currency and US yields) that have pulled down Bitcoin and other cryptocurrencies so far this month.

Time will tell if additional speculation about the impending halving events and technical purchasing support the Litecoin price. However, that does seem like a strong likelihood, given that the cryptocurrency’s future open interest recently reached its highest level since late 2021.

Will LTC (Litecoin) reach $1,000 in 2023?

Investors are considering what upside price levels they should aim for in the coming years as cryptocurrency markets appear to be entering the early phases of a new bull market.

Since just two cryptocurrencies, Bitcoin and Ether, are now members of this exclusive club, some Litecoin bulls may aim for the cryptocurrency to join the $1,000 per token or above club in 2023.

But to do so, Litecoin would have to increase ten times from its present levels in just over seven and a half months.

It shouldn’t be assumed that’s not possible.

Litecoin increased eight times between November 2020 and May 2021, rising from about $55 to over $410 per token.

But at the same time, there was a sharp rise in the price of all cryptocurrencies, spurred by low-interest rates, significant fiscal stimulus, a quick economic recovery, and a surprising rise in institutional interest in cryptocurrencies as an asset class.

Even though the trend towards more social and institutional investor adoption of cryptocurrency technology and crypto as an asset class has persisted, those other economic circumstances will probably not be present in 2023.

Yes, the Fed will probably stop raising interest rates and maybe even drop them a bit this year, so macro shouldn’t be the huge impediment it was in 2022 when the Fed was actively raising rates to manage inflation.

Bulls in Litecoin, however, ought to be cautious about expecting a $1,000 price this year.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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