Litecoin Price Could Hit $100 as Miners Acquire 120,000 LTC after Ethereum ETF Approval

Litecoin price opened trading at $85 on May 23, reflecting a 4% upswing within the weekly timeframe: despite bearish headwinds in the aftermath of the Ethereum ETF approvals, LTC continues to flash bullish signals. 

Litecoin holds 4% gains despite Post-Ethereum ETF Correction Phase

Most of the top-10 ranked mega cap crypto assets have suffered significant outflows in over the last 24 hours. This widespread downswing comes as crypto investors switched focus to ETH markets in the aftermath of landmark spot Ethereum ETF approvals verdict from the US SEC on May 23.

Unlike, rival Proof-of-Stake (PoS) networks like Solana (SOL) and Cardano (ADA) which rapidly fell to weekly lows on Friday morning, Litecoin and other Proof-of-Work coins including BTC have shows significantly more resilience.

As seen in the chart above, positive speculations saw LTC price surge 10% to retest $90 at the start of the week, before succumbing to a 6% correction toward $84.50 range at the time of writing on May 24.

Meanwhile the likes of SOL and ADA which have slid to weekly lows after recording 15% and 14% losses respectively since the Ethereum ETF approval. Evidently, Litecoin price has shown significant more resilience.

Litecoin Miners Flip Bullish Acquiring 120,000 LTC in 3 days

Currently, Litecoin price is trending 4% higher than its opening price for the week despite the ongoing consolidation phase experienced by mega cap crypto assets in the aftermath of the Ethereum ETF approval.

On-chain data trends suggest that LTC miners have been pivotal to Litecoin’s resilient price performance over the last few days.

IntoTheBlock’s miner reserves data shows that real-time changes in the number of coins held in custody of recognized Litecoin miners and mining pools.

Litecoin miners had held their cummulative reserve balances constant at around 1.74 million LTC since the start of the May 2024. But that trend shifted on May 20, just as Bloomberg analysts broke the news of an impending SEC approval for Ethereum ETFs.

Based on the data presented in the chart above, since May 20, Litecoin miners have rapidly acquired 120,000 LTC, bringing their cumulative reserves to 1.86 million LTC at the time of publication around 5 pm CET on May 24.

Valued at the current Litecoin prices, the miners have accumulated newly-mined coins worth approximately $10.2 million within the last 3-days.

Typically, an increase in miners reserves is often considered bullish for Proof-of-Work coins for tow major reasons.

Firstly, it reduces selling pressure on LTC, with a much lesser number of newly-mined coins flooding the short-term market supply. This partly explains why Litecoin price has delivered a relatively more resilient performance, while the likes of SOL and ADA, battling with staking withdrawals have declined to weekly lows.

More importantly, the timing of the Litecoin miners’ reserve accumulation aligns closely with significant news of Ethereum ETFs approval by the SEC.  The anticipated inflow of fresh institutional investment into the crypto sector appears to have trigger a positive sentiment swing, encouraging miners to hold their reserves in anticipation of higher price upside in the coming weeks.

If this bullish price outlook holds true, and miners keep adding to their $10.2 million reserve inflows, Litecoin price could be setting up for a parabolic upswing above the $100 milestone as ETH ETFs begin to gain traction.