The best time to accumulate on high potential assets in during times of low volatility, and that time is now for cryptocurrencies. After a whole year of heavy downside sentiment, the crypto market seems to be settling down. The next stage for this market could be a prolonged consolidation period, which is perfect for long-term investors. One crypto that make sense to accumulate in this period is Litecoin (LTC). That’s because it has something major coming up in about 220 days.
In August, the Litecoin (LTC) block reward will reduce from 25 to 12.5 coins. This reduced supply is largely expected to have a positive impact on the price of Litecoin (LTC) since it comes against an ever increasing demand for Litecoin (LTC) and cryptos in general. Such a possibility is backed by the fact that the past halving for both Bitcoin (BTC) and Litecoin (LTC) led to huge increases in prices. In essence, Litecoin (LTC) halving this time could set the pace for even higher prices in the future. But one may ask, why now? Why not wait until August and buy Litecoin (LTC)?
Well, the challenge with that is that the potential return on investment would be highly diminished. That’s because, as the halving gets nearer, investors are likely to FOMO into Litecoin (LTC) and drive up the price. Getting in at a high price simply increases risk because of the increased possibility of a correction after the halving. It’s just how markets work. Savvy investors buy the rumor, in this case an upcoming event, and sell the news. Getting in early cushions an investor from a potential correction after the halving happens.
Besides, getting in now is still a massive opportunity for long term capital growth. That’s because, Litecoin is one of the cryptocurrencies whose core fundamentals to a large extent guarantee it of long-term growth. One of those fundamentals is its high levels of adoption, relative to most other cryptos. Litecoin (LTC) is one of the most adopted cryptos in the market, and its adoption levels continue to grow. This growing adoption rate will play a role in driving up the demand for Litecoin (LTC) in the future. While most cryptos are only speculating about potential future demand, Litecoin (LTC) already has it, and is building on a strong brand name that has become as commonplace as that of Bitcoin (BTC). This long term growth in demand makes Litecoin (LTC) a high potential buy for any investor looking for capital appreciation.
Closely linked to growth in demand is the capped supply of Litecoin (LTC). Litecoin has a capped supply of 84 million coins. The total supply of Litecoin at the moment is 59 million, and this could be lower when you factor in the coins that have been lost along the way. In essence, as long term demand grows against an increasingly low supply, the price of Litecoin (LTC) is likely to keep growing going into the future. The probability of a $1000+ Litecoin based on demand and supply factors is highly probable, and makes LTC a good buy at current prices.