In anticipation of this week’s interest rate decisions by central banks, whales appear to be stepping up their purchase of Litecoin. From early November, they have acquired 2.96 million LTC valued at over $220 million.
Big Mega whales investors are steadily buying into the Litecoin network
Mega whales or investors with at least 1 million LTC, have their eyes on Litecoin. As observed, in the early weeks of November, whales acquired roughly $221 million of LTC, pushing their total holdings to a near five year high.
The move is ahead of the highly anticipated FED meeting. Analysts expect the central bank to further hike interest rates by 50 basis points (bps) on December 14. The announcement will precede the Bank of England (BoE) and the European Central Bank (ECB) interest rate announcements on December 15.
The blockchain analytics company Santiment announced this morning that whales have been ramping up their LTC holdings. According to the tweet, there have been 2.95 million LTC added to wallets with 1 million or more LTC coins in the last five weeks.
Reduced liquidity results in price declines across the crypto market
Reduced liquidity has resulted in price declines across the cryptocurrency market, including Bitcoin, Ethereum, and Litecoin. It has a reasonably high correlation with BTC (according to data from Cryptowatch, the correlation between Litecoin and Bitcoin is 0.49, and between Litecoin and Ethereum, it is 0.77).
In November, the Federal Reserve of the United States announced that it planned to increase interest rates gradually. In addition, trader confidence in cryptocurrencies has been weakened by several factors, including the high-profile collapse of Terra’s sister tokens LUNA and UST, the bankruptcy of the FTX exchange, and dozens of additional DeFi hacks and vulnerabilities.
According to a reputable media outlet, which tracks the cryptocurrency market, the price of LTC has decreased during the past 24 hours. At the time of writing, the value of LTC has fallen by 3.97% to $74.37. This has contributed to a further decrease in the altcoin’s price during the past week. Over the past week, LTC has dropped 10.51%.