Bitcoin, Ethereum, XRP Drop as Crypto Selloff Deepens. Why It May Get Even Worse. — Barrons.com
By George GloverThe price of Bitcoin and other cryptocurrencies was tumbling Tuesday, extending a severe selloff.The world's largest crypto was down 4.4% to $91,466 over the past 24 hours, according to data from CoinDesk. Bitcoin has fallen seven of the past eight days, a run that means it's now trading in the red for 2025 and at its lowest level since mid-April, according to Dow Jones Market Data.Ethereum dropped 4.3%, Solana slid 3%, and XRP fell 4.1% over the past 24 hours, according to data from the Kraken crypto exchange.The main factor dragging down digital assets has been investors fretting that the Federal Reserve won't cut interest rates next month, which has sparked a broader pivot away from risk.Traders are pricing in a 46% chance that the central bank lowers borrowing costs by a quarter of a point on Dec. 10, down from 67% a week ago, according to the CME FedWatch tool. When rates remain unchanged investors tend to dump cryptos and other risk-on assets, as they are less appealing relative to interest-bearing investments such as bonds and savings accounts.That means Thursday's September nonfarm payrolls report could be a crunch moment for Bitcoin and its peers. If the figures signal the labor market has remained resilient, that would strengthen the case for the Fed to hold rates steady — which would likely drag down crypto prices further.Write to George Glover 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.