Litecoin (LTC), often called the “silver” to Bitcoin’s “gold” in the crypto world, is getting ready for an interesting period ahead. A well-known crypto trader named Pentoshi recently made an intriguing prediction about the future of this digital currency.
Pentoshi sets the target of $138 for Litecoin
Pentoshi believes that something similar to past events could happen in the next eight to ten weeks. According to a graph, Litecoin’s price may rise to $138 and then drop back to $92. At the heart of Pentoshi’s analysis lies the upcoming Litecoin halving, a significant event that has historically caused notable market activity.
However, Pentoshi also advises caution to investors. Even if Litecoin reaches $138, it won’t be enough to make up for the losses suffered during the ongoing bear market.
The Significance of Litecoin Halving
Moving ahead he seems skeptical as Litecoin halving is an event when the LTC mining rewards get cut in half. This event is pre-programmed into Litecoin and occurs every 840,000 blocks, which is roughly every four years. The purpose of this event is to act as an effective hedge against inflation. During a halving event, the planned reduction in mining rewards halves the rate at which new coins are generated, effectively reducing the overall supply. This scarcity factor theoretically has the potential to drive up the price of LTC. The next Litecoin halving event is projected to occur on Thu, Aug 03, 2023, at 03:33:55 AM GMT.
Considering Factors Beyond Halving
However, Litecoin has already faced challenges in the bearish crypto market. Despite occasional recoveries, its overall trend has been downward, resulting in substantial losses for those who invested at its peak. It’s important to consider factors beyond the halving event.
It is quite evident that historical performance and halvings can impact a cryptocurrency’s value, they are not the only factors determining its future price. Market sentiment, overall crypto market trends, and macroeconomic conditions also play a significant role.