Litecoin Price Outlook: Is BTC Back to $92k at $80?
Litecoin drops to $75 as top altcoins slide early in US Bitcoin and Ethereum slipped before making small gains. The US Department of Justice has opened a criminal investigation into Jerome Powell.
The price of Litecoin fell more than 5% as cryptocurrency markets suffered a synchronized fall on Monday, while stocks fell on fears of the US Federal Reserve's independence.
Litecoin Price Hits $75 But With BTC Looking Profits Can LTC Jump To $100?
Litecoin to mirror top coins?
A bearish move in the crypto market followed a new dump for Bitcoin.
Bitcoin hovered around $90,000 during the U.S. trading session on Monday, with gains above $92,000.
However, at the time of writing, the token was trading at around $92,135, while Ethereum was late at $3,134.
Bitcoin and Ethereum have been showing resilience as markets overcome bearish pressure.
While the two remain at their respective psychological thresholds, regaining reversal momentum could be key to Litecoin's gains.
LTC traded at $77 at the time of writing.
But as the chart below shows, the bottom road looks stronger for the altcoin.
Crypto slide by Fed announcement
In particular, buyers saw prices rally as markets reacted to the news that the Department of Justice (DOJ) had opened a criminal investigation into Federal Reserve Chairman Jerome Powell.
Top altcoins such as XRP and BNB saw declines, and Litecoin fell to $75, the last time it was seen in late December.
The slide in the leading cryptocurrencies was fueled by risk-averse sentiment sparked by news of a DOJ investigation into Fed Chairman Jerome Powell.
Powell released a statement on Sunday, announcing the subpoena from the Justice Department.
Although the news saw Bitcoin slip above $92k, declines followed as Wall Street futures edged lower.
The DOJ's subpoena and criminal investigation into Powell have fueled fears of political interference in US monetary policy.
Powell emphasized that the investigation is not just about the testimony related to renewals, but also about the Fed's interest rate cuts.
“While the Fed needs reform, including maintaining the critical issue of central bank independence while strengthening accountability, a mismanaged process can disrupt appointments and further jeopardize policy effectiveness,” Mohamed El-Erian said on X.
This uncertainty is dragging US stocks back from recent record highs.
On Monday, the Dow Jones Industrial Average fell 0.8%, while the S&P 500 fell 0.3%. The tech-heavy Nasdaq Composite was down 0.2 percent.
The rebound reflects broader risk aversion, with investors flocking to safe havens like gold. Gold prices extended gains on Jan. 12 amid turmoil.
