Litecoin Long-Term Holders Smartly Exited Before Halving, Data Shows
August 08 2023 - 4:00PM
NEWSBTC
Data shows that Litecoin long-term holders exited the asset before
the halving, while short-term holders were left to panic on the
halving day. The “halving” here refers to an event where the block
rewards of Litecoin are permanently cut in half. Litecoin Long-Term
Holders Sold During Price Surge Before The Halving According to
data from the market intelligence platform IntoTheBlock, the
long-term holders had been well-prepared for the “sell the news”
halving event. The “long-term holders” (LTHs) generally include all
investors who have been holding onto their coins since at least six
months ago. Related Reading: These Bitcoin Metrics Are At Important
Retests, Will Bullish Trend Prevail? This group includes some of
the most resolute investors in the Litecoin market, who don’t
easily react to whatever is going in on in the wider sector, as
they usually hold through FUD or profit-taking opportunities
without participating in any significant selling. Because of how
rare movements from these investors can be, the few times that they
do sell can be the ones to watch out for, as they may spell trouble
for the market. A way to gauge whether the LTHs are participating
in selling or not is through the “holding time of transacted coins”
metric, which tells us about the average amount of time that coins
being transferred on the blockchain had been dormant prior to this
movement. When the value of this metric is high, it means that the
age of coins being sold on the network is high, which can naturally
be a sign that the LTHs are active right now. On the other hand,
low values usually indicate that the short-term holders (STHs) are
the ones selling currently. Now, here is a chart that shows the
trend in the Litecoin holding time of transacted coins over the
past few months: The value of the metric seems to have been
relatively low in recent days | Source: IntoTheBlock on X As you
can see in the above graph, the Litecoin holding time of transacted
coins spiked back in June, when the price of the cryptocurrency had
been observing a sharp rally. During the largest of these spikes,
the indicator’s value had exceeded 1 year, implying that some of
the most experienced investors in the market had broken their
silence. This rally had occurred as the market had started getting
hyped about the halving, which was only a month and a half away at
that point. This event takes place every four years, with the
latest one having occurred just earlier this month. Unlike what
some may have hoped for, the event didn’t prove to be bullish for
LTC, as the aforementioned rally didn’t last for too long and the
cryptocurrency only declined in the remaining leadup to the
halving, until finally it actually sharply plunged on the day of
the event itself. It would appear that the experienced LTHs had
already predicted something like this may happen, so they had taken
the wise decision of selling while the opportunity was there.
Related Reading: Bitcoin Miners Show Accumulation Again, Bullish
Sign? In the post-halving selloff, the indicator’s value has
remained low, implying that it’s only the short-term holders who
have been panic selling after they saw that a bullish trend
couldn’t return to Litecoin with the event. LTC Price At the time
of writing, Litecoin is trading around $84, down 8% in the last
week. LTC has plummeted since the halving | Source: LTCUSD on
TradingView Featured image from Kanchanara on Unsplash.com, charts
from TradingView.com, IntoTheBlock.com
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