Litecoin Plunges 6% to Fresh Monthly Lows on Halving Day

Litecoin (LTC) plunged to its lowest price in a month Wednesday afternoon shortly after undergoing its anticipated “halving” event.

The native token of the Litecoin blockchain sunk to as low as $86, a level not seen since June 30, according to CoinDesk price data.

The coin is down roughly 6% during the day, underperforming bitcoin (BTC) and the broader crypto market represented by the CoinDesk Market Index, down 0.8% and 0.5%, respectively.

The decline followed Litecoin’s third halving in its history since 2011. The event happens roughly every four years – similar to Bitcoin halvings – and cuts the rewards for miners in half, curbing the issuance of new tokens. In crypto circles, LTC is often referred to as digital silver, akin to BTC’s digital gold nickname.

However, LTC’s price performance of around halvings differs from BTC’s behavior. Whereas bitcoin has tended to move higher following halvings, the past two occasions for litecoin has seen that crypto peak prior to the event and then sliding lower for months afterward.

“Litecoin’s halving cycle has been one of anticipation, where it troughs and peaks ahead of its halving event,” Greg Cipolaro, global head of research at digital asset investment firm NYDIG, wrote in a report last week. “This is opposed to bitcoin, which has peaked well after its halving in its cycles.”

In prior halving years, LTC hit a top about four to six weeks ahead of the event, then declined into the halving and found a bottom after, Cipolaro explained.

The token this time surged to as high as $112 on July 3, reaching its highest price for the year roughly one month before the halving. It’s down 22% since.