Litecoin (LTC) Jumps 11% as SEC Acknowledges Canary Capital's ETF Proposal

The crypto market is trading positively with the Fed risk event out of the way, focusing on positives such as the crypto-friendly president in the

Crypto Market Positivity With Fed Event Out of the Way, Impact on LTC, Updates on Tether, CNY Effect

Rising Together: Crypto Market Focuses on Positives

After a period of anticipation, the crypto market is finally reacting to the Federal Reserve interest rate hike decision. As expected, the rates have increased by a quarter point, bringing them to a range of 4.50% to 4.75%. This marks the eighth consecutive hike, with two more expected later this year.

The market has responded positively to the news, with most cryptocurrencies trading in the green. The world's apex digital asset, bitcoin (BTC), has risen by 1.5% in the past 24 hours, trading at an early Asian time price of $50,434.

Among cryptocurrencies with $5 billion-plus market valuations, the standout performer is litecoin (LTC), which has jumped more than 11% since the early Asian hours compared with gains of 1% to 3% for the rest. It is the third-best performing of the top 100 coins in the past 24 hours, thanks to the SEC acknowledging Canary Capital’s Litecoin ETF proposal. That has opened for public feedback, a move that hints at potential approval in the coming months.

"This is the first altcoin ETF filing to get acknowledged," Bloomberg Senior ETF analyst Eric Balchunas said on X, noting that the proposal is the one to make the most progress in regulatory requirements.

A potential listing could be as positive for LTC as it has been for BTC and ETH. Note that despite the price surge to $130, LTC is still well short of the $410 record high hit in 2021. Its price chart shows a constructive outlook (check out the Technical Analysis section below).

On-Chain Analysis Highlights Lower Retail BTC Participation, Institutions Dominating Staking

In other key developments, on-chain activity tracked by Glassnode shows a lower level of retail participation in BTC right than in November. That's encouraging for bulls looking for cues on whether the latest move above $100,000 is sustainable. Meanwhile, Lombard Finance is becoming more dominant in the bitcoin staking space, capturing a giant share of the total BTC staked this week.

Meanwhile, in the world of ETH, the number of active addresses recently topped a March 2024 high, signaling a renewed uptick in the on-chain activity, according to IntoTheBlock data. Ether's price has crossed above $3,200 but is yet to clear the bearish trendline connecting the Dec. 16 and Jan. 6 highs.

Traditional Market Highlights: Bond Yield Drops in Bullish Move for Risk Assets

In traditional markets, the yield on the benchmark U.S. 10-year Treasury note has dropped to 4.50%, revisiting Monday's low in a bullish move for risk assets. Those bullish on BTC may be hoping for U.S. core PCE inflation to come in softer-than-expected later today, driving the bond yield even lower.

That said, we will also get fourth-quarter GDP alongside the weekly jobless claims report. Meanwhile, European gas prices have surged to a 15-month high and could inject some volatility into risk assets. Stay alert!

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