Bitcoin Price Slips Away From Record. What Inflation Data Could Mean for Cryptos. — Barrons.com
By George GloverBitcoin was sliding on Tuesday, meaning that bulls may have to wait a little longer before the crypto hits a new high.The large-cap token was down 2.3% to $118,740 over the past 24 hours, according to data from CoinDesk. Having flirted with record levels on Monday, it's now more than 3% off the all-time high price of just above $123,000 it hit in mid-July.Other tokens were also struggling to make gains. Ethereum was flat over the past 24 hours, while Solana dropped 4.8% and XRP fell 3.7%, per data from the crypto exchange Kraken.Looming inflation data could be one reason crypto investors were feeling a little on edge. Economists expect consumer price index data — due earty Tuesday — to show that core inflation rose 3.1% from a year ago in July, well above the Federal Reserve's 2% goal.That sort of reading could make it harder for the central bank to justify cutting interest rates in September, which would likely keep a lid on crypto prices. Higher borrowing costs tend to give the U.S. dollar a boost, which could draw investors away from digital alternatives like Bitcoin.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.