Bitcoin, XRP, Ethereum Fall Again. Why Jobs Data Hit Hopes of a Crypto Rebound. — Barrons.com
By Callum KeownBitcoin, Ethereum and XRP were under pressure Tuesday after key economic data failed to support digital assets on what may be a make-or-break day for hopes of a cryptocurrency rebound to end the year.Cryptocurrencies tumbled Monday and Bitcoin fell to around $86,000 as risk sentiment across markets soured, with tech stocks leading the way lower. Investors were hoping that employment reports for October and November would be the catalyst for a crypto comeback.Bitcoin gained ground to around $87,400 heading into the data release but slipped below $87,000 after the reports were published. The November report showed stronger-than-expected hiring but higher-than-expected unemployment.It didn't really move the dial on Federal Reserve interest-rate expectations. The market currently sees just a 24% chance of a quarter-point reduction in January, according to CME's FedWatch tool, down from 27% earlier in the day.Lower rates typically support cryptocurrencies, making them more attractive relative to lower-yielding assets. Last week's rate cut didn't help at all but that may be because of fears the Fed may pause its cuts.The world's largest cryptocurrency was trading at $87,800 later on Tuesday, up 1.5% over the past 24 hours, according to CoinDesk data. It's off more than 30% from its record high of nearly $127,000 reached in early October.Other cryptos also recovered. Ethereum rose 0.7% to $2,957 and popular altcoin XRP was up 1.9% at around $1.93.Write to Callum Keown 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.