Why 78% of Litecoin Holders Stay Long-Term Despite Market Volatility

78% of Litecoin holders have kept their LTC for over a year, with analysts suggesting confidence in future price growth, despite recent market sell-offs and Federal Reserve rate decisions.

According to data from on-chain analytics platform IntoTheBlock, 78% of Litecoin (LTC) addresses have held their LTC for over a year, demonstrating long-term confidence in the cryptocurrency. Historically, these holders tend to accumulate during bearish market phases and sell during price peaks.

While there has been a slight decline in long-term holdings in the current cycle, it is notably less pronounced compared to previous cycles. IntoTheBlock suggested that this trend could indicate that many holders are expecting continued price growth for Litecoin.

Currently, Litecoin is facing pressure, with its price down 13.14% in the last 24 hours to $94.43. The decline forms part of a broader market sell-off and marks Litecoin’s third consecutive day of losses, with prices dipping to $92.65 in today’s trading session. This slump follows a recovery phase after Litecoin reached a low of $101 on December 10, rebounding to $131 by December 13 before resuming its downward trajectory.

The overall cryptocurrency market is also struggling due to selling pressure, fueled by diminished speculative enthusiasm as U.S. monetary policies tighten. The Federal Reserve recently cut interest rates by a quarter percentage point, bringing the range to 4.25%-4.50%. However, Chair Jerome Powell’s cautious tone about the outlook for next year has dampened investor sentiment. Fed policymakers have raised inflation projections and reduced the expected number of rate cuts in 2025 from four to two.

Adding to the unease, the U.S. labor market appears stronger than anticipated. Weekly jobless claims dropped to 220,000, below economists’ forecasts of 230,000. Investors are now waiting for the release of the November Personal Consumption Expenditures (PCE) index, a key inflation measure, which could further influence market sentiment.

Despite short-term challenges, the high percentage of long-term Litecoin holders suggests resilience and belief in the cryptocurrency’s potential for growth.

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