Bitcoin Price Drops, Ethereum Gains. What's Moving Cryptos. — Barrons.com
By Adam ClarkBitcoin was falling and other cryptocurrencies were mixed heading into the weekend, as traders await Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Economic Symposium.Bitcoin's price was down 0.8% over the past 24 hours early on Friday, at around $112,910.The world's largest cryptocurrency hit a new high of more than $124,000 last week amid optimism over interest-rate cuts. However, cryptos have dropped back after economic data and Fed meeting minutes suggested policymakers are likely to be split over the need for rate reductions. That raises the stakes for Powell's speech, which will be watchedclosely or any clues in terms of monetary policy.Lower rates make risky assets such as stocks and digital assets more attractive relative to interest-yielding investments such as bonds. Reduced rates also tend to weaken the dollar, which boosts crypto valuations.Several large altcoins were falling. XRP dropped 2.1% and Solana was down 2.2%. Dogecoin, which is a memecoin, was losing 2.8%. However, Ethereum was up 0.2% at around $4,318."[Bitcoin's] daily MACD [Moving Average Convergence Divergence] has pulled back to neutral levels. Despite this, there may be some light support around $112,000, which, should it hold going into the weekend, may strengthen some bullish resolve," wrote Trade Nation analyst David Morrison in a research note. "Ether's daily MACD suggests a market which is still overbought. Yet relatively, it continues to hold up better than Bitcoin. If Ether were to fall further, the first significant level of support comes in around $4,000."The Moving Average Convergence Divergence is a technical indicator that some investors use to identify momentum shifts in an asset.Write to Adam Clark 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.