- Litecoin’s price plummeted to lows of $75 as top altcoins, including Bitcoin and Ethereum, experienced a downturn in early US trading, sparking concerns about the overall crypto market trend.
- Bitcoin and Ethereum also slid before picking up slight gains, with the cryptocurrency market reacting to the latest news and developments in the space.
- The US Department of Justice has opened a criminal probe against Jerome Powell, the Federal Reserve Chair, which has sent shockwaves through the financial markets and raised questions about the independence of the US Federal Reserve.
Litecoin’s price slipped more than 5% as the cryptocurrency markets experienced a synchronized downturn on Monday, with stocks also down amid concerns over the independence of the US Federal Reserve and the potential implications for the crypto market.
The price of Litecoin reached $75, but with Bitcoin eyeing gains, could LTC jump towards $100 and regain its footing in the crypto market?
Litecoin to Mirror Top Coins?
Downside action across the crypto market followed a fresh dump for Bitcoin, which has been struggling to regain its momentum in recent weeks.
Bitcoin hovered near the $90,000 level in the early US trading session on Monday, having pared gains from above $92,000, and leaving investors wondering if the crypto market is due for a rebound.
However, the token traded at around $92,135 at the time of writing, while Ethereum lingered close to $3,134, as the two leading cryptocurrencies showed resilience in the face of bearish pressure and market uncertainty.
Both Bitcoin and Ethereum were showing signs of strength, and reclaiming upside momentum may be key to Litecoin gains, as the crypto market looks to bounce back from recent losses.
LTC traded at around $77 at the time of writing, but as the chart below shows, the path lower appears stronger for the altcoin, raising concerns about its short-term prospects.
But as the chart below shows, the path lower appears stronger for the altcoin, and it remains to be seen if Litecoin can regain its footing and join the ranks of top-performing cryptocurrencies like Bitcoin and Ethereum.
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, sparking fears of political interference in US monetary policy.
Top altcoins like XRP and BNB saw declines, and Litecoin traded to lows of $75, last seen in late December, as the crypto market struggled to come to terms with the latest developments.
The slide in the leading cryptocurrencies stemmed from risk-off sentiment triggered by the news of a DOJ probe against Fed chair Jerome Powell, which has raised questions about the future of the US economy and the crypto market.
Powell released a statement on Sunday, revealing subpoenas from the Justice Department, and emphasizing 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, as investors rotate toward perceived safe havens like gold, and the crypto market looks to navigate the challenging landscape.
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%, as the stock market reacted to the latest news and developments.
The pullback reflects broader risk aversion, with investors rotating toward perceived safe havens like gold, and the crypto market looking to rebound from recent losses.
Gold prices indeed extended gains on Jan 12, amid the turmoil, as investors sought to diversify their portfolios and reduce their exposure to risk.
