Bitcoin Price Can't Clear $94K Hurdle Even as Stocks Rise. Why That's a Problem. — Barrons.com
By Callum KeownBitcoin and other digital assets fell Friday, losing some of its bounce — and not getting a boost from key inflation numbers that pushed stocks higher.Bitcoin was trading at $91,336, down 1.8% over the past 24 hours, according to CoinDesk. The world's largest cryptocurrency climbed as high as $93,966 on Thursday, recovering from lows of $84,500 on Monday.The crypto's latest attempt to push beyond $94,000 — a level it last reached in mid-November — looks to have failed again for now.That could change with the Federal Reserve's next interest-rate decision on Dec. 10. The central bank is widely expected to cut rates by a quarter-point — lower borrowing costs tends to boost crypto assets, making them attractive relative to lower-yielding alternatives.The inflation data, delayed by the government shutdown, boosted stocks, including risk assets such as tech names. That should have helped cryptocurrencies but it didn't, which is a bit of a concern.The Fed's preferred inflation metric, core personal consumption expenditures price index, rose 2.8% year over year in September, compared with 2.9% in August — the first slowdown since April.Those numbers support a rate cut by the Federal Reserve, which meets Wednesday. A reduction would be the next potential catalyst for a crypto comeback."Liquidity and sentiment remain fragile, so we don't view this as a full recovery just yet," Gracy Chen, CEO of crypto exchange Bitget said. "If the Fed confirms at least one rate cut, likely in December, the early-2026 period should stay favorable for both tech giants and digital assets."Ethereum, the second largest cryptocurrency, was down 2.4% at $3,135, while popular altcoin XRP slipped 3% to $2.09.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.