Bitcoin and XRP Prices Rise After Selloff. Why It's Just a Cautious Comeback. — Barrons.com
By Callum KeownBitcoin, XRP and other cryptocurrencies launched a tentative rebound Wednesday, mirroring stock market moves, after a sharp selloff in recent days.The price of Bitcoin rose 1.2% to $89,068, recovering from a 24-hour low of $86,099, according to CoinDesk data. The world's largest cryptocurrency is still down more than 10% from where it was on Friday afternoon. Ethereum, the second-largest crypto, was up 4% at $2,484.XRP, the popular altcoin, enjoyed a slightly more meaningful comeback as it climbed to $2.32 — up more than 8% over the past 24 hours. The token surged after President Donald Trump's election victory on hopes of a more crypto-friendly administration but the rally has faded in recent weeks. XRP is still up 294% over the past six months, though."Crypto's 'Trump bump' has reversed, with digital currencies dropping sharply, back to levels not seen since November," Hargreaves Lansdown analyst Susannah Streeter said.She added that the absence of more regulatory support from the new administration has caused "deep disappointment" among investors. "Trump hasn't yet come good on promises to make the U.S. the crypto capital of the world, by setting up a Bitcoin strategic reserve for example."The lack of support has left cryptocurrencies exposed to broader market sentiment, most notably the flight away from riskier assets in recent days. The tech-heavy Nasdaq Composite has fallen for four consecutive days, dropping more than 5% over that period. Futures rose slightly early Wednesday, coinciding with the cautious crypto comeback.For now, digital assets are following the wider trends.Write to Callum Keown at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.