Bitcoin Price, XRP Falls. What's Dragging Cryptos Down. — Barrons.com
By George GloverBitcoin was sliding on Friday, as some investors took the opportunity to sell after a spell of strong gains for the cryptocurrency.The world's largest token was down 2% to $119,233 over the past 24 hours, according to data from CoinDesk. It's now about 5% off the record high it hit earlier this week.Other cryptos were also lower. Ethereum fell 1.4%, Solana dropped 3%, and XRP slipped 3.2%, per the crypto exchange Kraken.Hot wholesale inflation data published on Thursday may be what's dragging cryptos down. The producer price index for July picked up by more than what economists were expecting, making the market less confident that the Federal Reserve will cut interest rates at its next meeting in September.The prospect of rate cuts helped Bitcoin top $124,000 for the first time ever this week. When borrowing costs are lower, risk-on assets like cryptos have more relative appeal for investors compared with safer bets like bonds.Investors will also be keeping a close eye on how crypto exchange Bullish does on Friday, given that it made its stock-market debut with a stellar initial public offering earlier this week. Shares climbed 9.8% on Thursday after surging 84% on its first trading day. The stock pointed 2.2% higher in premarket trading Friday.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.