Grayscale Buys Litecoin Price Dip: Will LTC Rebound?
After the Fed’s FOMC meeting, crypto markets crashed, including Litecoin (LTC) price. This drop is due to the Fed’s hawkish decision on reducing the number of rate cuts in 2025 from the anticipated four to two. Grayscale Investments seem to be making the most of this drop by buying LTC. Will this institutional-led buying spree coupled with spot LTC ETF hopes trigger a rebound for Litecoin?
Grayscale Buys LTC Dip, Is Litecoin Price Rebound Next?
Litecoin price is trading at $109 after the market-wide crash, down by 25% from its highest level this year. This decline is mostly tied to the ongoing weakness in the crypto market, with Bitcoin price falling below $100,000 for the first time in two weeks.
Despite this short-term crash, Grayscale Investments is buying the LTC dip. Data compiled by CoinGlass shows that the company bought 2,230 LTC on Thursday, bringing its 30-day accumulation to over 41,100 coins. Its total Litecoin holdings are now valued at over $220 million.
Is Spot Litecoin ETF on Its Way?
Grayscale’s purchases raise the likelihood that the company will file for a spot Litecoin ETF in 2025. Just this week, Eric Balchunas, the head of ETF research for Bloomberg noted that an LTC ETF will get an easy approval path because of its similarity to Bitcoin. If true, this event could catalyze a massive rally for Litecoin price.
Litecoin is a Bitcoin hard fork and has some similarities like halving and a fixed supply cap. The SEC does not see it as a security too, which will ease its ETF approval.
Grayscale’s accumulation of LTC is a good sign because it is one of the biggest creators of crypto exchange traded funds.
LTC Hash Rate Hits All-Time High
Meanwhile, Litecoin’s hash rate has jumped to a record high, a sign that mining activity is increasing. Its hash rate rose to 1.66 TH/s, higher than the 30-day average of 1.52k. Hash rate is an important number in crypto that looks at the computational power made per second. A higher number is a sign that the network is healthy and greatly impacts LTC price.
Litecoin’s mining difficulty has also jumped in the past few months after its last halving event. Also, the number of Litecoin addresses with balance has held relatively stable at over 8 million in the past few weeks.
LTC Technical Analysis: Will Litecoin Rebound From Key Support?
Technicals suggest that the the value of LTC may bounce back soon. It dropped to a low of $103, which was a notable level since it was its lowest level on December 9. The coin has also remained above the 50-day moving average, which is providing substantial support.
This price is also nearly 25% lower the previous YTD high, which was the upper side of the cup and handle (C&H) chart pattern. A C&H is a popular bullish continuation setup, hence, it is likely that the LTC will bounce back as traders embrace the new normal of a hawkish Fed. A move above $112.40 will confirm the bullish view and potentially propel it to the yearly high around $150 and eventually to $200, if the bullish momentum remains high.
Conversely, a drop below the support at $100, a key psychological point, will invalidate the bullish view and point to more downside for Litecoin price. Such a development could see LTC revisit $90, a key support level.
The post Grayscale Buys Litecoin Price Dip: Will LTC Rebound? appeared first on CoinGape.
