Cryptocurrency News Price Analysis

Litecoin (LTC) Whales Accumulate Ahead of Central Bank Decisions-Filled Week

Jim Smith
  • Litecoin’s leading whales which have held the highest supply since 2017, began massive LTC accumulation.
  • Addresses with more than 1 million Litecoin tokens accumulated 2.95M LTCs over the last five weeks.
  • The US Fed, British, and European central banks will announce their respective rate decisions this week, translating to a volatility-filled moment for digital assets.

Litecoin saw an increase in accumulation by dip-pocketed investors as markets contemplated central bank interest rate decisions this week. Whales scooped around 2.95 million LTC coins worth approximately $220 million since November’s first week.

LTC Whales Scoop Tokens Worth $220M Within Five Weeks

Litecoin’s mega whales with more than 1 million LTC tokens have consistently accumulated the alt for the past five weeks. These holdings have surged to the highest mark since June 2017, following an accumulation worth approximately $220 million.

Santiment, a crypto intelligence firm, stated that LTC whales held the highest tokens available in supply for the initial time since 2017. Market analysts consider asset accumulation by whales bullish for the alt.

Central Bank Rate Decisions Might Trigger Crypto Volatility

The United States Fed, British, and European central banks will reveal their new moves on rates this week. The Chinese crypto journalist Colin Wu labeled it the Super Central Bank’s Week.

The United States FOMC (Federal Open Market Committee) will publish its interest rate decision on 14 December. Analysts trust there’s a 75% chance of a 50 basis points hike. Also, British and European central banks will announce their rate moves at that time.

Caleb Tucker of Merit Financial Advisors stated that individuals had perceived crypto tokens as a hedge against inflation, though the assets have recently performed more like risk assets like stocks. He added that increased rates would mean a headwind for cryptocurrencies.

Digital assets like BTC, ETH, and alts such as LTC that have a high correlation with Bitcoin have reacted to declined liquidity following price slumps. The United States Fed Reserve highlighted plans to increase rates in November last year.

Since then, the bank has aggressively hiked rates, citing soaring global inflation. Combined with events such as Terra’s UST and LUNA fallout, exchange FTX bankruptcy along 190 associated firms, and DeFi exploits have deteriorated trader faith as far as crypto investment is concerned.

LTC Price Risks Dip to $74.50

LTC price recorded a steady uptick from $57.67 in November’s week two, climbing toward $84.75. Meanwhile, the alternative token resorted to declines, with the 50-da EMA (Exponential Moving Average) presenting a challenging hurdle at $77.07.

Meanwhile, $73.59 has served as a dependable support floor for the LTC price. LTC price dipped beneath the $74.50 footing and seemed ready to hit $73.59 following notable overnight losses. Nevertheless, a successful 50-d EMA retest might cancel Litecoin’s bearish narrative.