Litecoin’s ETF filing propels LTC up 14%, as Bitcoin, ADA, and DOGE experience slight increases.

Bitcoin (BTC) climbed nearly 3% in the last 24 hours, making a recovery after a steep decline earlier in the week. The price, trading around $105,000 in European morning hours on Thursday, benefitted from the U.S. Federal Open Market Committee (FOMC) meeting, where it was decided that interest rates would remain unchanged. This development lifted market sentiment, driving positive momentum across both equities and cryptocurrency markets.

The FOMC, led by Jerome Powell, opted to keep the policy rate steady at 4.25-4.50% after three consecutive rate cuts in 2024. Powell explained that the decision was made in order to see continued progress on inflation. “We do not need to be in a hurry to adjust our policy stance,” he said in his press conference.

Rate hikes typically make traditional investments more attractive, potentially weakening Bitcoin’s appeal. In contrast, lower rates often make Bitcoin more enticing by reducing the attractiveness of other investment vehicles. Additionally, higher interest rates can strengthen the U.S. dollar, potentially driving Bitcoin’s price lower, while lower rates can have the opposite effect.

Bitcoin’s price has now fully recovered from the 8% drop earlier this week, driven by liquidations that presented an opportunity for market participants to buy the dip, as noted by CoinDesk. Other major cryptocurrencies mirrored Bitcoin’s rise, with Cardano (ADA), Dogecoin (DOGE), XRP (XRP), and Ether (ETH) all gaining up to 3%. Solana (SOL) performed slightly better, increasing by 4%, and the overall CoinDesk 20 index (CD20) saw a 2.8% rise.

In the altcoin space, Litecoin (LTC) experienced a notable 14% surge following the U.S. Securities and Exchange Commission (SEC) recognizing the filing for a spot Litecoin ETF by Canary Capital. This makes it the first altcoin ETF filing to be acknowledged by the SEC, surpassing previous filings for Bitcoin and Ethereum.

Eric Balchunas, an analyst at Bloomberg Intelligence, tweeted that the Litecoin filing was the “first altcoin 19b-4 to be acknowledged” and noted that it is the furthest along in the process. The SEC has now opened a public comment period, with a final decision expected in approximately 240 days.