- Litecoin mega whale addresses holding highest level of available supply since June 2017 have started mass accumulation.
- In the past five weeks, 2.95 million Litecoin tokens were accumulated by addresses with 1 million or more LTC in their wallet.
- The US Federal Reserve, the European and British central banks will usher in decisions on interest rates, ensuring a volatility-filled week.
Litecoin accumulation by large wallet investors has picked up pace prior to central bank decisions on interest rates this week. LTC whales scooped up 2.95 million Litecoin tokens worth nearly $220 million since the first week of November 2022.
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Litecoin whales accumulate $220 million worth of LTC in five weeks
Litecoin network’s large wallet investors, mega whales holding 1 million or more LTC tokens, have been consistently accumulating the altcoin for the last five weeks. After scooping up nearly $220 million worth of the altcoin since the first week of November 2022, mega whale holdings have hit their highest point since June 2017.
Based on data from crypto intelligence platform Santiment, whales are now holding the highest percentage of the available Litecoin supply for the first time since June 2017. Whale accumulation by large wallet investors is considered bullish for the asset.
Litecoin mega whale address holdings
Central bank interest rate decisions could usher in volatility in crypto prices
The US Federal Reserve, European Central Bank (ECB) and Bank of England (BoE) are all set to announce their decisions on interest rates this week. Colin Wu, a Chinese journalist labeled the week starting December 12, the “Super Central Bank Week.”
On Wednesday, December 14, the US Federal Open Market Committee (FOMC) will announce its decision to raise interest rates, with a 75% probability by 50 bps. The ECB and BoE will announce their interest rate decisions the day after.
Caleb Tucker, director of portfolio strategy at Merit Financial Advisors argues,
Crypto assets had been seen as an inflation hedge, but recently they have acted more like other risk assets such as stocks. Higher rates will be a headwind for crypto assets going forward.
Cryptocurrencies like Bitcoin, Ethereum and altcoins like Litecoin that enjoy a relatively high correlation with BTC (based on data from Cryptowatch LTC correlation is: 0.49 with BTC, 0.77 with ETH) have responded to reduced liquidity with price declines.
The US Federal Reserve first announced its intention to raise interest rates in November 2021, since then the central bank has aggressively followed through. The high-profile fallout and collapse of Terra’s sister tokens LUNA and UST, FTX exchange’s bankruptcy, and dozens of other DeFi hacks and exploits, have combined to erode traders’ confidence in cryptocurrencies.
Litecoin price risks decline to $74.50
Litecoin price climbed steadily from $57.67 to $84.75 in week two of November 2022. Since then, the altcoin has started a decline with a 50-day Exponential Moving Average (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 plummeted below support at the weekly low of $74.50 and is headed to test the $73.59 support after yielding nearly 5% losses overnight for LTC holders. A successful retest of the 50-day EMA could invalidate the bearish thesis for Litecoin price.