Crypto Circus: Litecoin’s Wild Ride and Bitcoin’s Daring Dance!

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What to know:

  • In the grand theater of European mornings, Bitcoin pranced around the $105,000 mark, as the first act of the U.S. FOMC meeting concluded with a dramatic pause on interest rates. 🎭
  • Cardano’s ADA, dogecoin (DOGE), xrp (XRP), and ether (ETH) joined the Bitcoin ballet, each pirouetting up to 3%. Solana’s SOL, however, stole the spotlight with a dazzling 4% leap! 💃
  • But wait! Litecoin (LTC) took a wild turn, soaring 14% as the U.S. Securities and Exchange Commission (SEC) finally acknowledged the 19b-4 filing from Canary Capital for a spot Litecoin ETF. Talk about a plot twist! 🎉

As the curtains rose on Thursday, Bitcoin was busy trading around the $105,000 level, basking in the glow of the FOMC meeting’s decision to keep rates steady. This news sent ripples of joy through both stock equities and crypto markets, like a well-timed punchline in a comedy routine.

Jerome Powell, the maestro of the FOMC, decided to keep the policy rate steady at 4.25-4.50 percent, marking the first decision of Trump’s presidency after a series of rate reductions that felt like a rollercoaster ride in 2024. 🎢

“We do not need to be in a hurry to adjust our policy stance,” Powell quipped at the post-policy press conference, as if he were a stand-up comedian waiting for the right moment to deliver the punchline. The rate pause was a strategic move, as officials sought further progress on inflation, like a chef waiting for the soufflĂŠ to rise.

Interest rate hikes can make traditional investments more appealing, potentially reducing the demand for Bitcoin. Conversely, lower rates tend to boost Bitcoin, making other investments look as attractive as a soggy sandwich. Higher rates might strengthen the dollar, impacting Bitcoin’s price negatively, while lower rates could do the opposite. It’s a classic case of “what goes up must come down,” or is it the other way around? 🤔

BTC added nearly 3% in the past 24 hours after the FOMC meeting, reversing all losses from a Monday bloodbath that saw prices drop as much as 8%. It was a liquidation-led flushout ripe for dip-buying opportunities, as CoinDesk noted, like a buffet where the best dishes are left for the brave. 🍽️

Cardano’s ADA, dogecoin (DOGE), xrp (XRP), and ether (ETH) mirrored BTC’s gains, each rising as much as 3%. Solana’s SOL, the overachiever, outperformed with a 4% rise. The broad-based CoinDesk 20 (CD20) added 2.8%, like a group of friends cheering each other on at a karaoke night.

Outside of the major players, Litecoin (LTC) surged 14% as the SEC finally acknowledged the 19b-4 filing from Canary Capital for a spot Litecoin ETF, marking it as the first of its kind beyond BTC and ETH. It’s like being the first to arrive at a party and claiming the best snacks! 🎊

“First altcoin 19b-4 to be acknowledged, the rest were told to withdraw by Genz SEC,” Bloomberg Intelligence analyst Eric Balchunas tweeted, adding a sprinkle of sarcasm to the mix. “In the comments from SEC on the S-1, this filing is by far the furthest along, checking all the boxes.”

A public comment period has now been initiated, with a 240-day decision deadline for the SEC. It’s like waiting for the final season of your favorite show to drop—will it be worth the wait? 🍿

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2025-01-30 14:59