- Litecoin fell to lows of $75 as major altcoins dropped during early U.S. trading.
- Bitcoin and Ethereum also dipped before recovering modestly.
- The U.S. Department of Justice has opened a criminal inquiry involving Jerome Powell.
The price of Litecoin tumbled more than 5% as cryptocurrency markets experienced a synchronized sell-off on Monday, with equities also retreating amid concerns over the independence of the U.S. Federal Reserve.
Litecoin fell to $75. With Bitcoin eyeing gains, could LTC rally back toward $100?
Will Litecoin follow the top coins?
The downward move across crypto markets followed another dump in Bitcoin.
Bitcoin held near the $90,000 region in the first U.S. trading session on Monday after losing gains above $92,000.
At the time of writing, Bitcoin traded around $92,135, while Ethereum remained near $3,134.
Both Bitcoin and Ethereum showed resilience despite broad bearish pressure.
Although both sit close to key psychological levels, regaining upward momentum could be crucial for Litecoin’s potential gains.
LTC was trading near $77 at the time of writing.
But as the chart below illustrates, Litecoin’s downward path appears stronger than some other altcoins.
Cryptocurrencies slip amid DOJ subpoenas involving the Fed
Buyers saw prices fall as markets digested news that the U.S. Department of Justice (DOJ) had opened a criminal inquiry involving Federal Reserve Chair Jerome Powell.
Top altcoins such as XRP and BNB dropped, and Litecoin touched $75—levels last seen in late December.
The decline among major cryptocurrencies stemmed from a broader risk-off sentiment triggered by reports of a DOJ investigation into Fed leadership.
Powell issued a statement on Sunday acknowledging DOJ subpoenas.
Although the initial news pushed Bitcoin above $92,000, declines followed as Wall Street futures slid.
The DOJ subpoenas and the criminal inquiry into Powell heightened concerns about political interference in U.S. monetary policy.
Powell emphasized that the probe appeared motivated by resistance to the Fed’s reluctance to pursue aggressive rate cuts, beyond routine testimonies about policy decisions.
“While the Fed needs reforms, including preserving the crucial independence of the central bank while strengthening accountability, a poorly handled process risks politicizing appointments and undermining policy effectiveness,” Mohamed El-Erian wrote on X.
That uncertainty pushed U.S. equities off recent record highs.
On Monday, the Dow Jones Industrial Average fell about 0.8%, the S&P 500 lost 0.3%, and the tech-heavy Nasdaq Composite slipped roughly 0.2%.
The pullback reflected a broader risk aversion, with investors rotating toward perceived safe havens such as gold. Gold prices extended gains on January 12 amid the market unrest.