Litecoin Surges Over 11% as Crypto Market Gains Momentum Amid Trade Talks

Litecoin experienced a significant rise on Tuesday, outperforming Bitcoin and Ethereum. The cryptocurrency surged over 11%, its trading volume increased by 41%, and Open Interest in derivatives spiked by nearly 10%. This positive momentum was fuelled by trade deal developments with China, despite a prior dip caused by the delayed decision on a Litecoin ETF application.

On Tuesday, Litecoin (LTC) topped the list of cryptocurrency gainers as the market generally enjoyed some much-needed momentum, fuelled by positive news around potential trade agreements. Litecoin saw a significant jump, up over 11% within just a 24-hour window, reaching levels not observed since late March. Trading volume during this period surged by 41%, equating to around $805 million, marking LTC as one of the most actively traded coins in the market.

The price trajectory for LTC began relatively stable in the morning but dramatically shifted in the afternoon, peaking at an intraday high of $93.18 by evening. This performance notably overshadowed larger cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), which saw increases of 2.45% and 1.62% respectively during the same timeframe.

The surge didn’t just stop at price gains, as it positively impacted LTC’s derivatives sector. Open Interest for Litecoin contracts grew by 9.77%, reaching $606 million—the highest seen in over two months, as reported by Coinglass. This combination of factors points to an enthusiastic rebound in interest amongst traders and investors.

Importantly, this bullish movement coincided with rumors that Treasury Secretary Scott Bessent is slated to engage in talks with Chinese officials regarding trade negotiations. This follows a backdrop where Litecoin’s price had been suffering a downturn after the SEC postponed its decision concerning a proposed Litecoin exchange-traded fund.

Market analysts suggest there’s potential for Litecoin to be the first altcoin ETF approved in 2025, a notion backed by a 76% approval likelihood as estimated by bettors on Polymarket. At the time of reporting, LTC was trading at approximately $91.86, reflecting a remarkable gain of 11.84% over the past 24 hours. Investors and analysts continue to watch closely as market conditions evolve rapidly in this optimistic climate.