Federal Reserve policies trigger market crash, Grayscale Investments buys Litecoin, can the LTC price rebound?

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After the Federal Reserve FOMC meeting, the crypto market crashed, and the price of Litecoin (LTC) fell to $109, down 25% from this year's high. This decline was mainly influenced by the Federal Reserve's tough monetary policy, particularly the reduction of interest rate cut expectations from four times to two times in 2025.

Nevertheless, Grayscale Investments took the opportunity to buy Litecoin at a low price. According to CoinGlass data, Grayscale has accumulated over 41,100 LTC in the past 30 days, with a total value exceeding $220 million. This indicates Grayscale's confidence in the long-term prospects of Litecoin, and its large-scale purchases may pave the way for the launch of a spot Litecoin ETF in 2025. Bloomberg ETF expert Eric Balchunas stated that the Litecoin ETF could be easily approved, which would have a positive impact on the price of Litecoin.

In addition, Litecoin's hash rate has reached an all-time high, indicating increased miner activity and a healthy network, which helps support LTC's long-term value.

From a technical analysis perspective, LTC is currently finding support around $103, and if it breaks through $112.40, it may see a rebound, pushing it up to $150 or even $200. However, if it falls below the $100 support level, LTC may decline further, returning to the $90 level.

Overall, Grayscale's continued purchases and the healthy state of the Litecoin network provide support for a rebound in LTC prices, and a certain increase may be seen in the short term.

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