In a surprising turn of events, Litecoin prices surged by 24% in the last 24 hours, defying the broader bearish sentiment engulfing the cryptocurrency markets. This sudden increase comes as the broader market grapples with a series of economic challenges, including a weak technical stance in the Fiber pair and fresh threats of US tariffs on European goods. The risk sentiment has further soured due to recent US data that indicated a lack of strength in the US economy, contributing to a complex financial landscape.
The EUR/USD currency pair saw a significant downturn, falling nearly nine-tenths of one percent on Thursday, slipping back below the 1.0400 mark for the first time in almost two weeks. This decline is partly due to disinflation becoming more widespread, although there is a rapid rise in prices for services, particularly in France and across the Eurozone. Inflation appeared to have eased in February, especially in France, thanks to a cut in regulated electricity prices.
Moreover, core US inflation pressures are hinting at an uptick, adding another layer of complexity to the economic outlook. These pressures contribute to the souring of risk sentiment, as institutions begin accumulating Litecoin ahead of a potential ETF launch. Analysts suggest that bears might struggle to force a near-term reversal below $120.
The decline is not limited to the EUR/USD pair. The GBP/USD also turned south on Thursday, falling nearly six-tenths of a percent. Bids for GBP/USD skidded back into the 1.2600 handle, signaling heightened caution among traders amidst uncertain global economic conditions.