The US dollar index has risen to its highest level for five months.
The US economy continued to grow, and the rally occurred as a result.
The USD and Litecoin are in inverse relation.
Litecoin Price remained under pressure as the US Dollar Index (DXY), surged up to its highest level for over five months. LTC fell to a low level of $62 on Tuesday and is now hovering around the lowest levels since December.
US Dollar Index Surges
Litecoin and other cryptocurrency prices have come under scrutiny after last week’s events. The Securities and Exchange Commission (SEC), which oversees the US securities market, suffered a major setback on Wednesday when Greyscale won an important case.
This victory will probably lead to the SEC approving the launch of Bitcoin spot ETFs. After the news broke, BTC and LTC spiked in value. However, the rally slowed down after the SEC delayed a decision about funds from companies such as Blackrock and Invesco.
Litecoin traders are closely following these events because there is a close correlation between BTC LTC. Litecoin, for one thing, was created by a Bitcoin person.
Therefore, if Bitcoin has a successful spot ETF there is a very high chance that Litecoin’s ETF will be released shortly thereafter.