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Litecoin [LTC] prices in a frenzy as cryptocurrency exhibits a bullish breakout

Litecoin [LTC] prices in a frenzy as cryptocurrency exhibits a bullish breakout

A bullish charm has captured Litecoin [LTC] as the digital coin is among the top performers of the market today. The prices are gaining against USD by 8% and has risen 5% in market value in today’s trading session. LTC prices which began to trade around $30 at the beginning of the year have doubled and have crossed $70, a critical resistance level for the coin.  

The expeditious growth of the Proof of Work [PoW] cryptocurrency is also in terms of its hashrate. The Litecoin hashrate has hit an all-time high at 359 TH/s on April 8.

LTC hashrate

The hashrate rise can be attributed to mining using new mining equipment which increases the efficiency of mining. Another narrative claims that the testing period before new miner equipment is introduced in the market causes a hashrate breakout.

Many argue that hashrate follows price. When LTC prices were diving as an aftermath of the bear market of the hashrate also started declining. Some miners shut down operations due to increasing costs which led to decreased hashrate.

This caused the concentration of LTC mining within a small group of companies that had the resources to brave the bear market. Hence, the LTC hashrate gradually recovered and spiked again when the crypto market trends reversed.

The current growth of Litecoin is ascribed to halving that the cryptocurrency is set to undergo in August. Halving will reduce the mining reward of LTC which will cause a reduction in the mining of the coin. This will cause a reduction in the supply, increasing the demand for the crypto asset. Investors are said to be cashing in on this opportunity which is creating a price rise in the market.

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