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Every four years, there is what is known as a halving, where issuance of both Bitcoin and Litecoin are cut by 50% and each and every one of these halving has coincided with epic bull markets.
Blockworks analyzed price data starting six months before each halving and including up to one year after the Bitcoin halving.
This was the result for BTC:
- 20,000% increase during the 2012 event;
- 560% increase during the 2016 halving and;
- 780% increase during the 2020 halving.
Most of BTC’s gains were seen almost a full year after each halving took place. Litecoin halvings have also aligned with similar bullishness but in a very different pattern.
Unlike bitcoin’s after-the-fact rallies, LTC has pumped the hardest in the six months before its halvings occurred.
There does not appear to be a distinct pattern in LTC’s price performance in the year following each event.
Six months leading up to both halvings were eerily similar.
- LTC peaked at about 320% gains roughly 45 days out from each halving.
- LTC gave up most of the returns in the month directly after.
- LTC rounded out the year after each event up between 80% and 110%.
BTC & LTC Halvings - The Next Bull Market?
The next Litecoin halving is expected to occur in the next 100 days and the next Bitcoin halving is expected to take place around this time next year (346 days).
If history decides to repeat itself (as it has for all prior halvings), we can expect to see a lot of volatility in the market and new higher highs for both Bitcoin and Litecoin which will likely result in the next crypto bull market.