Bitcoin Price Falls. Why This Trump Trade Is Fizzling Out. — Barrons.com

By George GloverBitcoin prices were sliding on Tuesday, putting the cryptocurrency on course to extend its run of losses since President Donald Trump returned to the White House.The large-cap token slipped 0.5% to $95,507 in early trading, putting it 14% below the record high it hit Jan. 20, the day of Trump's inauguration.Two factors have been weighing on Bitcoin since then. First, bulls have been left underwhelmed by new administration's crypto policies: While the Securities and Exchange Commission has set up a digital-asset task force, Trump is yet to follow through on his campaign promise to set up a Bitcoin strategic reserve.Macroeconomic factors have also weighed on the token. Data published by the Bureau of Labor Statistics last week showed that inflation had ticked up in January, making it even less likely that the Federal Reserve will be able to cut interest rates anytime soon. When borrowing costs are higher, riskier assets like cryptocurrencies tend to suffer because investors are able to get relatively better returns by buying into safer parts of the market, such as bonds.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.