Bitcoin Price Slips. 2 Things That Could Spark a Crypto Comeback. — Barrons.com

By George GloverBitcoin was edging lower early Monday, putting it on course to extend its so-so start to 2025.The large-cap token slipped 0.2% to $96,668. The large-cap token slipped 0.2% to $96,668. Cryptos were still trading, even though stock and bond markets were closed for Presidents Day.While Bitcoin surged after Donald Trump won the U.S. presidential election, it has slipped about 7% since his inauguration on Jan. 20. The new administration has pledged to launch a crypto task force, but stopped short of establishing the Bitcoin strategic reserve that bulls had been hoping for.More legislation designed to spur the U.S. crypto industry would likely spark a comeback in digital-asset prices. Macroeconomic factors could also drive a rebound.For example, any signs that inflation was easing toward the Federal Reserve's 2% target would likely drive Bitcoin prices higher, given that a cool-down would give the central bank reason to cut interest rates. Risk-on assets such as cryptocurrencies tend to benefit from a fall in borrowing costs, given safer investments such as bonds would offer relatively lower returns.Other cryptocurrencies were also sliding Monday. XRP fell 1.4% and Solana was down 1.9%, but Ethereum bucked the trend with a 4.8% gain.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.