- Litecoin price turns negative halfway through the European session as a meltdown in sterling creates ripples in the markets.
- LTC price will slip below $50 if dollar strength continues towards the US closing bell.
- Expect to see a negative weekly close with a possible further breakdown over the weekend.
Litecoin price (LTC) sees bulls being taken to the cleaners as an early rally gets cut short and turns completely negative. The catalyst appears to have been UK Chancellor Kwarteng’s speech which triggered a meltdown in sterling with ripple-effects extending throughout financial markets. This is proof, yet again, that cryptocurrencies are fully entangled with the dynamics of global markets, and dedicated cryptocurrency traders would do well to dive into their history books and learn about how to trade a global recession.
LTC price drops as sterling relives 1992
Litecoin price is diving lower as GBP is painting screens red reliving its famed 1992 meltdown. UK Chancellor Kwarteng announced more spending, with a view to easing household budgets by the UK government picking up a large portion of the energy bill for them. Inadvertently, Kwarteng has increased inflation expectations, as households will likely spend the savings, leaving the BoE hanging out to dry with no clue on what to do next.
LTC price is set to fully pair back the incurred gains from this morning and drop back towards $50.46. Should sterling keep selling-off and more dollar strength comes in, expect to see a little nudge towards $48 and the monthly S1 support. A negative close for the week is inevitable and could see more losses being eked out as traders further sell-off near the US closing bell, pushing the price down towards $44.00 and the monthly S2 support.
LTC/USD Daily chart
Although an uptick is impossible, it could happen should the dollar weaken. That might happen if investors choose to close out their positions and scale out of dollar-long positions by taking profit. USD would then fade a bit and synthetically pull up LTC price action towards $56.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
XRP gains as traders gear up for futures ETFs debut this week
XRP climbs over 3% on Monday, hovering around $2.33 at the time of writing. The rally is likely catalyzed by key market movers like XRP futures Exchange Traded Funds (ETFs) approval by the US financial regulator, the Securities and Exchange Commission (SEC), and a bullish outlook.
Bitcoin Price Forecast: BTC eyes $97,000 as institutional inflow surges $3.06 billion in a week
Bitcoin (BTC) price is stabilizing above $94,000 at the time of writing on Monday, following a 10% rally the previous week. The institutional demand supports a bullish thesis, as US spot Exchange Traded Funds (ETFs) recorded a total inflow of $3.06 billion last week, the highest weekly figure since mid-November.
Ethereum Price Forecast: ETH ETFs post first weekly inflows since February
Ethereum (ETH) recovered the $1,800 price level on Saturday after US spot Ether ETFs (exchange-traded funds) recorded their first weekly inflows since February.
Defi Development Corporation files to offer $1 billion in securities to boost its Solana holdings
Defi Development Corporation (formerly Janover) filed a registration statement with the Securities & Exchange Commission (SEC) on Friday, signaling its intent to offer and sell a wide range of securities, including common and preferred stock, debt instruments and warrants for the purchase of equity
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin (BTC) price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.