- Litecoin traded to lows of $75 as top altcoins slipped in early US trading.
- Bitcoin and Ethereum also slid before picking up slight gains.
- US Department of Justice has opened a criminal probe against Jerome Powell.
Litecoin price slipped more than 5% as the cryptocurrency markets experienced a synchronised downturn on Monday, with stocks also down amid concerns over the independence of the US Federal Reserve.
The price of Litecoin reached $75 but with BTC eyeing gains, could LTC jump towards $100?
Litecoin to mirror top coins?
Downside action across the crypto market followed a fresh dump for Bitcoin.
Bitcoin hovered near the $90,000 level in the early US trading session on Monday, having pared gains from above $92,000.
However, the token traded at around $92,135 at the time of writing, while Ethereum lingered close to $3,134.
Both Bitcoin and Ethereum were showing resilience as markets weathered bearish pressure.
While the two remain near respective psychological thresholds, reclaiming upside momentum may be key to Litecoin gains.
LTC traded at around $77 at the time of writing.
But as the chart below shows, the path lower appears stronger for the altcoin.
Crypto slid amid Fed subpoenas
Notably, buyers saw prices dip as markets reacted to news that the Department of Justice (DOJ) had launched a criminal investigation into Federal Reserve Chair Jerome Powell.
Top altcoins like XRP and BNB saw declines, and Litecoin traded to lows of $75, last seen in late December.
The slide in the leading cryptocurrencies stemmed from risk-off sentiment triggered by the news of a DOJ probe against Fed chair Jerome Powell.
Powell released a statement on Sunday, revealing subpoenas from the Justice Department.
Although the news saw Bitcoin flip to above $92k, declines followed as Wall Street futures dipped.
The DOJ’s subpoenas and criminal probe against Powell have intensified fears of political interference in US monetary policy.
Powell emphasised that the investigation appeared motivated by the Fed’s resistance to demands for aggressive interest rate cuts, rather than solely the renovation-related testimony.
“While the Fed needs reform, including maintaining the crucial issue of central bank independence while strengthening accountability, a mishandled process risks derailing appointments and undermining further policy effectiveness,” Mohamed El-Erian said on X.
This uncertainty has US stocks pulling back from recent record highs.
On Monday, the Dow Jones Industrial Average sank 0.8%, while the S&P 500 shed 0.3%. The tech-heavy Nasdaq Composite was down around 0.2%.
The pullback reflects broader risk aversion, with investors rotating toward perceived safe havens like gold. Gold prices indeed extended gains on Jan 12. amid the turmoil.
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