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- Litecoin mega whale addresses maintain their highest level of available supply since June 2017 and started the massive accumulation of LTC.
- In the last five weeks, addresses with 1 million or more LTC in their wallet have accumulated 2.95 million Litecoin tokens.
- The US Federal Reserve, European and British central banks will usher in interest rate decisions this week, ensuring a volatile time for cryptocurrencies.
Litecoin accumulation by large wallet investors accelerated close to central bank decisions on raising interest rates this week. LTC whales obtained 2.95 million Litecoin tokens worth almost $220 million since the first week of November 2022.
Also read: Bitcoin Continues to Trade Sideways, Will BTC Exit Limbo with US PPI Data Release?
Litecoin Whales Accumulate $220 Million in LTC in Five Weeks
Large Litecoin Network Wallet investors, mega whales holding 1 million or more LTC tokens have been steadily accumulating the altcoin for the past five weeks. After raising nearly $220 million worth of altcoin since the first week of November 2022, mega whale farms hit their highest point since June 2017.
According to data from the Santiment crypto-intelligence platform, for the first time since June 2017, whales have the highest percentage of those available. Litecoin supply. Whale accumulation by large portfolio investors is seen as bullish for the asset.
Litecoin Mega Whale Address Holdings
Central bank interest rate decisions could usher in volatility in cryptocurrency prices
The US Federal Reserve, European and British central banks are expected to announce their interest rate decisions this week. Colin Wu, a Chinese journalist, called the week beginning December 12 “Super Central Bank Week.”
On December 14, the US Federal Open Market Committee (FOMC) will announce its decision to raise interest rates, with a probability of 75% in 50bp. The European and British central banks will also announce their interest rate decisions at a similar time.
Caleb Tucker, director of portfolio strategy at Merit Financial Advisors argues:
Crypto assets had been seen as a hedge against inflation, but have recently acted more like other risky assets, such as stocks. Higher rates will be a hurdle for crypto assets in the future.
Cryptocurrencies like Bitcoin, Ethereal and altcoins like Litecoin, which enjoy a relatively high correlation to BTC (according to Cryptowatch data, LTC correlation is: 0.49 to BTC, 0.77 to ETH) have responded to reduced liquidity by decrease in its price.
The US Federal Reserve first announced its intention to raise interest rates in November 2021, and the central bank has aggressively pursued it ever since. Combined with high-profile fallout and collapse of Terra’s sister tokens LUNA and UST, FTX exchange The bankruptcy along with 190 related entities and DeFi attacks and exploits have eroded merchants’ confidence in cryptocurrencies.
Litecoin price risks decline to $74.50
litecoin price it rose steadily from $57.67 in the second week of November 2022 to $84.75 in an uptrend. Since then, the altcoin started its decline with a 50 day EMA acting as resistance at $77.07 and the $73.59 level acting as key support for Litecoin price.
LTC/USDT price chart
Litecoin price plunged below the support at the weekly low of $74.50 and is heading to test the support at $73.59 after delivering almost 5% losses overnight for LTC holders. A successful retest of the 50 day EMA could invalidate the bearish thesis for Litecoin price.
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