Litecoin: Analyzing the impact of Montana’s new crypto bill on LTC

• Litecoin’s hashrate recorded an increase.
• Investors may have to wait a little longer for LTC’s next bull run.

A new bill was recently passed in Montana State with the aim of changing some laws in the region regarding cryptocurrencies and crypto mining.

Interestingly, this new bill could have a positive impact on Litecoin [LTC], as it is one of the world’s largest PoW blockchains.

The bill would ensure a level playing field for all miners by prohibiting energy companies in Montana from charging different prices for different types of mining for digital assets.

Moreover, the bill would also prohibit taxation of the use of cryptocurrency, including Litecoin, as a payment method.

In this regard, it should be noted that Litecoin recently mentioned that it was the second most traded currency after Bitcoin [BTC] with the world’s largest crypto payment processor, and the new bill could help further its adoption.

Realistic or not, here it is LTC market cap in BTCs terms

Miners responded immediately

Soon after the bill was passed, Litecoin’s hashrate recorded an increase, indicating an influx of new miners to the network.

As per CoinWarz, at the time of writing LTC’s hashrate was 722.42 TH/s. Surprisingly, despite the increase in hashrate, LTC’s mining difficulty declined a little, and the value was 23.72 million.

This increase in hashrate was an optimistic development for the network as the date of the LTC halving approaches.

Source: CoinWarz

On the other hand, LTCThe response on the price front was not satisfactory. This can be attributed to the ongoing bearish market trend.

CoinMarketCap’s data revealed that LTC remained less volatile over the past 24 hours, trading at $93.34 at press time with a market cap of more than $6.7 billion.

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Interestingly, even though LTC’s price action was dormant, a few metrics looked positive for the network. For example, the number of daily active addresses increased in the last week. Thus indicating that there were more users on the network.

LTC also managed to be in demand in the derivatives market as the BitMEX funding rate was consistently up.

Moreover, the speed, after going down, registered an upswing, which was also in the network’s favour. Nevertheless, the altcoin’s MVRV ratio has decreased significantly, indicating a bearish outlook in the near future.

Source: Sentiment

Investors can expect a few slow days

LTC’s daily chart revealed that the market was somewhat neutral, suggesting that investors may have to wait a while to see highly volatile price movements.

LTC’s Relative Strength Index (RSI) and Money Flow Index (MFI) are both hovering near the neutral mark.

The Bollinger Bands pointed out that LTC’s price was in a pressured zone, reducing the chances of a breakout in either direction.

Nevertheless, LTC‘s On Balance Volume (OBV) was relatively up, which looked bullish.

Source: TradingView