Halving Rally: Litecoin's Price Logs Biggest Monthly Winning Streak Since 2017

Litecoin's blockchain is set to undergo a mining reward halving in August this year, as it is programmatically designed to do so after every 840,000 blocks are mined or roughly once every four years.

Litecoin has scored gains in each of the previous four months - its longest monthly winning streak since August 2017.

Associating litecoin's rally with the reward halving makes sense as the process results in reduced production of the cryptocurrency's supply.

Backing that argument is historical data which shows the price of litecoin had rallied sharply in seven months leading up to its first reward halving, which took place on August 25, 2016.

The rally may not be over yet as the halving event is still three months away and traders who missed the bus in the first quarter may enter the market in the next few weeks, creating upward pressure on prices.

The implication of a "Halving" and its historical impact on price will start getting more attention as the event nears, potentially inviting more buyers to the market.

Case in point, this is what transpired in the few weeks leading up to litecoin's first halving in 2015.

As the date approached, investors began to lock in profits by selling the digital asset after it topped out in July 2015, one month prior to the reward halving.

The month of the halving itself closed with litecoin's price nearly 40% lower than when it started, further confirming investors lost interest in the cryptocurrency after the highly anticipated halving event had concluded.

After the supply cut, litecoin's price trend remained sideways for nearly two years before surging to new all-time highs in 2017, potentially laying the blueprint for what is to come after its block rewards are halved once more.