Bitcoin News Today: Litecoin Struggles at $95 as ETFs Fail to Drive Demand

Litecoin (LTC) is testing the $95 resistance level amid a broader crypto market slump, as weak demand and macroeconomic uncertainties weigh on investor sentiment. The coin's price action has drawn attention from traders and analysts, with technical indicators suggesting a critical juncture for the altcoin. Meanwhile, the launch of new crypto ETFs and shifting market dynamics are reshaping demand patterns across the sector.

The broader market environment remains bearish, with Bitcoin (BTC) approaching a "death cross" pattern—a historically bearish signal. This occurs when the 50-day moving average crosses below the 200-day moving average, a development that has historically coincided with major market bottoms. For instance, BTC has previously found support during similar events, such as in September 2023 near $25,000 and in April 2025 below $75,000. However, current conditions suggest further downside risk, with a 25% correction from recent highs and a 41-day downtrend raising concerns about prolonged weakness. Analysts note that the U.S. government's recent reopening, while potentially bullish for equities, has not yet translated into a meaningful rebound for crypto, echoing past underperformance during similar political transitions.

The ripple effects of weak demand are evident in other cryptocurrencies. XRP, for example, fell 4.3% despite the launch of the XRPC ETF, which set a record for first-day trading volume in 2025. The coin's technical profile shows a V-shaped rebound near $2.22, but broader bearish momentum—reflected in declining Fibonacci levels and oversold conditions—suggests limited upside without a sustained break above $2.24. This dynamic highlights the fragility of investor confidence, even in the presence of new financial products designed to simplify access to digital assets.

Litecoin's prospects are further complicated by the mixed performance of crypto ETFs. While the Canary Capital Group's XRPC ETF attracted $59 million in first-day trading volume, its Litecoin counterpart (LTCC) faces an uphill battle in a market where retail interest remains muted. The ETF's existence underscores growing institutional interest in altcoins but does not guarantee price stability for LTC. With Litecoin currently trading near critical resistance, a failure to break above $95 could trigger a retest of key support levels, exacerbating downward pressure.

Market participants are also watching Kraken's recent $800 million funding round, which valued the exchange at $20 billion. While this reflects continued institutional backing for crypto infrastructure, it does little to offset broader sell-offs. Kraken's expansion into derivatives and tokenized equities signals optimism about long-term adoption, but near-term volatility persists as macroeconomic factors—such as uncertainty around U.S. interest rate cuts—keep risk appetite low.

In summary, Litecoin's $95 resistance test occurs against a backdrop of weak demand, technical headwinds, and macroeconomic uncertainty. While new ETFs and institutional investments offer a glimmer of hope, the path to recovery remains contingent on broader market stability and renewed retail participation. Traders will closely monitor Bitcoin's death cross pattern and XRP's ETF performance as barometers for the sector's next move.