- Litecoin fell to a low of $75 as major altcoins dropped in early U.S. trading.
- Bitcoin and Ethereum also declined before recording modest recoveries.
- The U.S. Department of Justice has opened a criminal inquiry involving Jerome Powell.
Litecoin’s price slid more than 5% as the cryptocurrency market experienced a synchronized sell-off on Monday, with equities also pulling back amid concerns over the Federal Reserve’s independence.
With Litecoin trading near $75, and Bitcoin attempting a rebound, could LTC push back toward $100?
Is Litecoin following other top coins?
The crypto market declines followed renewed weakness in Bitcoin.
Bitcoin traded around $92,000 during early U.S. hours on Monday, trimming gains that earlier rose above $92,000.
At the time of writing, Bitcoin was changing hands near $92,135, while Ethereum remained close to $3,134.
Both Bitcoin and Ethereum showed resilience as markets absorbed downward pressure.
Although both assets are sitting near important psychological levels, regaining bullish momentum could be critical for Litecoin’s prospects.
LTC was trading around $77 at the time of writing.
However, as the chart below illustrates, the downtrend appears stronger for the altcoin.
Cryptocurrencies fall after DOJ subpoenas
Notably, buyers retreated after markets reacted to news that the U.S. Department of Justice (DOJ) had opened a criminal investigation involving Federal Reserve Chair Jerome Powell.
Top altcoins such as XRP and BNB dropped, and Litecoin hit a $75 low, a level last seen in late December.
The slide in leading cryptocurrencies reflected a risk-off mood triggered by the DOJ inquiry into Chair Powell.
Powell released a statement on Sunday disclosing the DOJ subpoenas.
Even as headlines showed Bitcoin trading above $92,000, prices dipped alongside declines in Wall Street futures.
The DOJ subpoenas and the criminal inquiry intensified fears of political interference in U.S. monetary policy.
Powell suggested the probe appeared linked to pushback against the Fed’s resistance to aggressive rate cuts, not merely testimony over a renovation matter.
“While the Fed needs reform, including preserving the central bank’s essential independence while strengthening accountability, mishandling the process risks inhibiting nominations and further weakening policy effectiveness,” said Mohamed El-Erian on X.
This uncertainty prompted U.S. equities to retreat from recent record highs.
On Monday, the Dow Jones Industrial Average fell about 0.8%, the S&P 500 dropped roughly 0.3%, and the tech-heavy Nasdaq Composite declined around 0.2%.
The pullback reflects a broader aversion to risk, with investors rotating toward perceived safe havens such as gold. Gold prices did, in fact, extend gains on January 12 amid the turmoil.