Americas Crypto Market Outlook: Litecoin Takes the Lead Amidst ETF Optimism and Rallying Prices

By Omkar Godbole (All times are in Eastern Time unless specified otherwise) The cryptocurrency market is experiencing a positive trend following the Federal Reserve risk event, focusing on encouraging factors such as the crypto-friendly US presidency, Tether's market resurgence, and the favorable Chinese New Year effect. Among the top cryptocurrencies with market valuations exceeding $5 billion, Litecoin (LTC) stands out with a significant surge of over 11% since the early Asian trading hours, outperforming other major cryptocurrencies which saw gains of 1% to 3%. As the third-best performing coin in the top 100 over the past 24 hours, this uptrend is largely attributed to the SEC's acknowledgment of Canary Capital's Litecoin ETF proposal, now open for public commentary. This development hints at potential approval in the coming months. According to Bloomberg Senior ETF analyst Eric Balchunas, "This is the first altcoin ETF filing to receive acknowledgment," and it has made the most progress in meeting regulatory requirements. A potential ETF listing could have a profoundly positive impact on LTC, similar to the effects seen on BTC and ETH. Despite the recent price surge to $130, LTC remains significantly below its record high of $410 in 2021, and its price chart indicates a constructive outlook. Other key developments include a decrease in retail participation in BTC, as tracked by Glassnode, which is an encouraging sign for bulls assessing the sustainability of the recent move above $100,000. Meanwhile, Lombard Finance is gaining dominance in the bitcoin staking space, capturing a substantial share of the total BTC staked this week. Ethereum has seen a significant increase in active addresses, surpassing the March 2024 high, signaling a renewed uptick in on-chain activity according to IntoTheBlock data. Although Ether's price has crossed the $3,200 threshold, it has yet to clear the bearish trendline connecting the December 16 and January 6 highs. In traditional markets, the yield on the benchmark US 10-year Treasury note has decreased to 4.50%, revisiting Monday's low in a move that is bullish for risk assets. Those optimistic about BTC are hoping for a softer-than-expected US core PCE inflation reading later today, which could drive the bond yield even lower. However, the fourth-quarter GDP and weekly jobless claims report are also scheduled for release. European gas prices have surged to a 15-month high, potentially introducing volatility into risk assets. It is essential to remain vigilant. Key Events to Watch: Upcoming Conferences: Token Talk by Shaurya Malwa Derivatives Positioning: Market Trends: Bitcoin Statistics: Technical Analysis: Crypto Equities: ETF Flows: Spot BTC ETFs: Spot ETH ETFs: Source: Farside Investors Overnight Market Flows: Chart of the Day: While You Were Sleeping: Ether Updates