Groups on the Chinese social media platform WeChat have been fueling Litecoin’s recent price rises - which have outpaced the general cryptoasset market - according to the bilingual Chinese crypto-news outlet 8btc.com.
8btc report the existence of a group called “Litecoin Halving Warm-up,” who have reportedly constructed a positive narrative surrounding the upcoming halving in Litecoin mining reward. LTC’s halving arrives in about 168 days, far before the expected Bitcoin halving in mid-2020.
Halvings in cryptocurrency mining emissions emphasize scarcity of a crypto. As far as price is concerned, Bitcoin has typically suffered a temporary price hit after a halving while the mining community re-adjusts (mining because much more difficult), before renewed broad uptrends in price.
The historical relationship between halving events and positive price action, at least in the case of Bitcoin, is already well publicized and studied. Much digital ink has been spent, especially during the 2018 bear market, on the halving’s presumed positive effect - although naysayers can of course be found even in this regard, claiming the Bitcoin halving will not have much positive effect.
With Litecoin’s mechanics being so similar to Bitcoin’s, the comparison and assumption of similar positive effect on price seems natural.
Leading the Market
Litecoin has indeed seen a surge in the past two weeks, leading the start of a market-wide February rally in cryptoasset prices. Often likened as silver to Bitcoin’s gold, LTC is now up a whopping 50% since its breakout on 8 Feb.
The crypto market has added almost $25 billion in market capitalization since 8 Feb., with almost $15 billion of it coming in the past two days.