Litecoin Halving Opportunity
There is a lot of excitement around the next Litecoin halving event, currently on track to occur in early August. The lower issuance and inflation rate as a result of the halving has the bulls excited about the prospects for Litecoin to seriously outperform in price.
Sadly, the smart and easy money in this asset has already been made. To me, this is yet another example of retail money chasing the headlines and social media chatter. And as history never fails, I suspect many will buy Litecoin in size near a top and be left holding the bag.
Since finding a low back in December 2018, Litecoin versus the $USD is already up a whopping 450%.
For the traders and investors who are primarily focused on $USD performance, I do not expect this price rally to end. In fact, as I expect Bitcoin to outperform the dollar for the coming 2+ years, pretty much all of the majors should outperform the dollar over this same timeframe. When viewed only from a fiat currency performance, the future gains in Litecoin will not tell the story of underperformance relative to other Cryptocurrencies.
The question we should be asking is whether Litecoin will be the best vehicle to capture the most gains over the coming Crypto bull market cycle. I suspect for the intermediate timeframe, into the summer months, that answer is yes. The buzz around the Litecoin Halving is already a self-fulfilling event and the increasing inflows of retail money is setting up Litecoin for a possible final and explosive run. Even after the amazing run to date, a further 50-70% upside versus Bitcoin is certainly possible.
But what about the outlook for beyond the halving event? Should you HODL your Litecoin?
My response is an unequivocal, NO!
If Litecoin performs as outlined above and reaches that 0.025 BTC level, then Litecoin will be at levels reached only a handful of times before. And in each of those occasions, Litecoin then went on to decline by between 70% to 92% versus BTC.
I do not expect this time will be different for Litecoin. I can appreciate that many of you are passionate about Litecoin and are HODL’ers for life. But knowing what we’ve seen from past performance, the prudent investment decision (if Litecoin > 0.02BTC) will be to sell a majority or all your Litecoin in exchange for Bitcoin. Doing so will lock in some serious profit, allow you to pick up a considerable amount of Bitcoin for cheap, and if so inclined, allow you to buy back 3 to 5 times more Litecoin in the future. Investing is about making smart decisions at the right times, I urge you to consider this Litecoin Halving Opportunity.