- Litecoin fell to lows near $75 as major altcoins dropped during early U.S. trading.
- Bitcoin and Ethereum also slipped before posting modest recoveries.
- The U.S. Department of Justice opened a criminal inquiry involving Jerome Powell.
Litecoin’s price slid more than 5% as cryptocurrency markets moved lower in a synchronized sell-off on Monday, with equities also pressured by concerns over the independence of the U.S. Federal Reserve.
After touching $75, could Litecoin climb back toward $100 if BTC regains momentum?
Can Litecoin Outshine the Top Coins?
Negative momentum across crypto followed another pullback in Bitcoin.
Bitcoin traded near the $90,000 region during the first U.S. session on Monday after trimming gains above $92,000 earlier.
At the time of writing, the token was changing hands around $92,135, while Ethereum remained near $3,134.
Both Bitcoin and Ethereum showed some resilience as markets absorbed downward pressure.
While both remain close to psychological levels, regaining bullish momentum could be key to any meaningful upside for Litecoin.
LTC was trading around $77 at the time of writing.
However, the chart below indicates the downtrend looks more pronounced for the altcoin.
Crypto Drops After Fed Subpoenas
Buyers saw prices fall as markets reacted to news that the U.S. Department of Justice had opened a criminal probe related to Federal Reserve Chair Jerome Powell.
Popular altcoins such as XRP and BNB also declined, and Litecoin hit $75 lows not seen since late December.
The sell-off in major cryptocurrencies followed a broader risk-off sentiment triggered by the DOJ’s inquiry into the Fed chair.
Powell issued a statement on Sunday confirming he had received subpoenas from the Justice Department.
Although the announcement briefly pushed Bitcoin above $92,000, declines followed as Wall Street futures turned lower.
The subpoenas and the DOJ’s criminal investigation into Powell heightened fears of political interference in U.S. monetary policy.
Powell suggested the inquiry appeared driven more by disagreement over the Fed’s resistance to aggressive rate cuts than by routine testimony matters.
“While the Fed needs reforms, including strengthening accountability while preserving central bank independence, a poorly handled process risks derailing nominations and undermining future policy effectiveness,” said Mohamed El-Erian on X.
That uncertainty pushed U.S. equities off recent highs.
On Monday, the Dow Jones Industrial Average fell about 0.8%, the S&P 500 lost roughly 0.3%, and the tech-focused Nasdaq Composite dipped around 0.2%.
The move reflects a broader flight from risk as investors sought perceived safe havens such as gold. Gold prices extended gains amid the market turmoil.