Trader and pseudonymous analyst, DonAlt, is cautioning investors about Litecoin (LTC) ahead of its upcoming halving event. As one of the earliest pioneers in the cryptocurrency industry, DonAlt has gained a significant following on Twitter, with nearly half a million followers. He claims that based on historical price action, Litecoin tends to experience major corrective moves following its halving events.
Litecoin’s halving, which is scheduled for August 2nd, 2023, entails a reduction in miners’ rewards by half. Traditionally, such an event has been considered bullish for cryptocurrencies, as it decreases the rate of new coin creation and potentially introduces scarcity. However, DonAlt believes that this time around, the halving will unlikely push Litecoin to new highs.
Looking at the Litecoin versus Bitcoin ratio, DonAlt argues that the pair has a history of losing over 80% of its value after the halving. This suggests that investors should exercise caution when considering Litecoin as an investment option. At present, Litecoin is trading at $92.89.
DonAlt’s skepticism extends beyond Litecoin, as he also expresses concerns about Bitcoin’s current market condition. Despite recent positive developments, such as BlackRock’s interest in a Bitcoin exchange-traded fund (ETF) and Ripple’s legal victory against the U.S. Securities and Exchange Commission, DonAlt believes that Bitcoin is currently weak.
At the time of writing, Bitcoin is valued at $30,060. DonAlt’s cautionary stance suggests that even with bullish news stories surrounding Bitcoin, the market may not reflect these positive factors. Investors should be vigilant and consider the overall market sentiment before making any significant investment decisions.
DonAlt, a prominent trader and crypto strategist, advises against investing in Litecoin ahead of its halving event. He points to historical price action and the potential for deep corrective moves after the halving as reasons for his skepticism. Additionally, DonAlt expresses concerns about Bitcoin’s market condition, cautioning investors despite positive recent news. As always, market participants should conduct thorough research and analysis before making any financial decisions in the volatile cryptocurrency market.