Litecoin’s (LTC) price has doubled in the first three months of 2019 to register its best first-quarter performance on record.
The fourth-largest cryptocurrency by market capitalization is currently trading at $61, representing a 100 percent gain on January’s opening price of $30. It clocked a six-month high of $64.20 earlier this month, according to Bitfinex data.
Last year, prices had dropped 48.5, 30, 24.6 and 49 percent in each quarter, respectively. The four-quarter losing streak was the second largest on record and saw prices fall by 86 percent.
The stellar gains seen in the first quarter of 2019 could be associated with the mining reward halving, due later this year.
On Aug. 8, the reward for mining on the litecoin blockchain will be reduced from 25 LTC to 12.5 LTC. The shift means miners will be adding fewer coins to the ecosystem after August, possibly leading to supply deficit.
The process is repeated every four years and tends to put a bid under the cryptocurrency at least six to seven months in advance, according to historical data.
For instance, LTC created a long-term low near $1.12 in January 2015 and rose to highs above $8.70 in July before falling back below $4.00 ahead of Aug. 25 – a day when the mining reward was cut in half from 50 to 25 LTC.
With bitcoin rallying 100 percent in Q1, history seems to be repeating itself. So, LTC could rise even further in the second quarter, albeit after a pullback, as technical charts are showing signs of bullish exhaustion. Read more
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