Bitcoin, XRP, Ethereum Fall. Why Tuesday Is Make or Break for the Crypto Recovery. — Barrons.com
By Callum KeownBitcoin, Ethereum and XRP were under pressure early Tuesday ahead of key economic data that could be make or break 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 will be closely monitoring jobs data on Tuesday as employment reports for both October and November are due to be released.The data — delayed due to the 43-day government shutdown — will help determine whether the Federal Reserve is likely to cut interest rates again in January. The market currently sees just a 27% chance of a quarter-point reduction, according to CME's FedWatch tool.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.Ahead of the data, Bitcoin was still stuck in its slump. The world's largest cryptocurrency was trading at $86,309 early in the day, down 4% over the past 24 hours, according to CoinDesk data. It's down 8% in 2025 and more than 30% off its record high of nearly $127,000 reached in early October.Other cryptos were also under pressure — Ethereum fell 7.1% to $2,930 and popular altcoin XRP was down 6% at $1.88.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.