Litecoin gains may be curbed by Jerome Powell’s testimony before the US Congress later in the day. The Fed Chair’s remarks will come a week after the Fed’s hawkish surprise. The banks’ shift in their policy outlook strengthened the US dollar while acting as a bearish catalyst for riskier assets like cryptocurrencies.
Litecoin is also reacting to China’s heightened efforts to crack its own on crypto trading. The Middle Kingdom has prohibited financial institutions from offering crypto-related services. According to Global Times, which is a newspaper backed by the ruling Communist Party, over 90% of the country’s bitcoin mining capacity is likely to be halted. This comes after authorities in Sichuan ordered the pausing of crypto mining.
After China causes bitcoin to crater, the threat of new U.S. Regulations looms over the crypto market.
Meanwhile, regulators are signaling they will continue to enact more regulations on the crypto sphere, including new rules that would hold exchanges and banks to stricter know-your-customer and anti-money-laundering regulations. The Securities and Exchange Commission Chairman Gary Gensler has repeatedly discussed the need for greater regulation of crypto exchanges to protect investors while saying that he considers many of the thousands of extant cryptocurrencies trading on exchanges to be unregistered securities that are subject to SEC enforcement actions.
LTC/USD Short (Sell)
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