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Litecoin (LTC) Hits 7-Day High Amid CFTC Commodity Buzz, Will the Bull Rally Last?

Published 27/03/2024, 12:40
Litecoin (LTC) Hits 7-Day High Amid CFTC Commodity Buzz, Will the Bull Rally Last?
LTC/USD
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COIN
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Coin Edition -

  • Litecoin’s LTC sees a 7-day high, buoyed by CFTC commodity status.
  • LTC addresses surpass 8 million, signaling surging adoption & market interest.
  • Coinbase’s LTC futures could boost liquidity, awaiting CFTC nod for April launch.

Litecoin (LTC) has been on a bullish streak in the last 24 hours, recording a 7-day high after finding support at the intra-day low of $87.78. This surge occurs in the light of supportive trends in the cryptocurrency market, particularly the news by the Commodity Futures Trading Commission (CFTC) about Litecoin being a commodity in the KuCoin case. This classification has attracted attention from both investors and traders, leading to the price of LTC gaining positive momentum.

LTC/USD 24-hour price chart (source: CoinStats)

The bullish momentum was still in charge by press time, and LTC’s price was up $95.63, a 4.96% rise from the intra-day low, although it had been seen as resistant at $96.97. Simultaneously, 4.06% and 105.86% growth were observed in the market capitalization and 24-hour trading volume, which reached $7,112,289,305 and $1,185,293,147, respectively.

Coinbase (NASDAQ:COIN) Futures Trading Announcement

Among the reasons that started off the rapid price appreciation of Litecoin is the announcement that Coinbase is going to start offering cash-settled futures contracts for Litecoin. The move is intended to improve accessibility and liquidity for Litecoin traders and is subject to CFTC’s approval.

The trading of these futures contracts is expected to start in the first week of April – subject to regulatory approval, and market participants are looking forward to the potential rise in Litecoin’s trading volumes and investor interest. Consequently, the expectation of improved liquidity and availability through futures trading makes Litecoin bullish.

Litecoin Adoption on the Rise

Adding more to the positive momentum for Litecoin is a signal of an explosion in adoption. According to recent on-chain data, the number of addresses that own Litecoin has exceeded 8 million, which represents a significant increase in the user base of this cryptocurrency. Such a spike in usage is due to the growing popularity of Litecoin among cryptocurrency users for its fast transaction speeds and low fees.

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