Bitcoin Price Slips Again. What Can Spark a Crypto Rebound. — Barrons.com
By George GloverBitcoin and other cryptocurrencies were struggling for direction on Wednesday, at the start of a crucial two-day stretch for digital assets.Bitcoin was down 0.3% to $91,320 over the past 24 hours, according to data from CoinDesk. It's now trading about 28% off the record high it hit in early October.Other tokens traded mixed. Ethereum and Solana gained 1.2%, but XRP was down 2.5% over the past 24 hours, per the Kraken exchange.Cryptos have slumped in recent weeks, amid a broader selloff in risk assets as investors fret about lofty artificial-intelligence valuations and looming economic data that could lower the chances of the Federal Reserve slashing interest rates in December.That makes Nvidia's third-quarter earnings and the September jobs report crucial. If the chip maker's results and forecast top expectations after the close Wednesday, then that could lead to investors piling back into AI stocks and other risk assets.Meanwhile, if nonfarm payrolls figures miss expectations on Thursday, then that could strengthen the case for a Fed rate cut next month. When interest rates fall, cryptos tend to rise, as they become more appealing relative to interest-bearing investments, like bonds and savings accounts.The market is currently pricing in a 47% probability of another cut in December, down from 94% a month ago, according to the CME FedWatch tool.Investors will also be keeping an eye on results from crypto exchange Bullish, due out ahead of Wednesday's opening bell.The CoinDesk owner went public with a blockbuster initial public offering in August, although its shares have slumped since then, sliding about 40% over the past three months amid the crypto selloff.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.