Bitcoin, XRP Price Dive as Trade Tensions Intensify. What Could Drive Cryptos Higher.

By Elsa OhlenBitcoin, XRP and other cryptocurrencies slid early Wednesday as the market turmoil continued.Bitcoin, the largest crypto by market value, is down 4.8% to $76,137 over the past 24 hours, according to CoinDesk data. Losses picked up pace Wednesday morning, echoing U.S. stock indexes, after China said it would impose an 84% tariff on U.S. goods, further escalating global trade tensions.XRP, the digital coin used to facilitate and settle transactions on Ripple's payment platform, also fell 8.9% to trade at $1.79. Ether was down 8.2% to $1,453, while Solana dropped 7.3% to $103.Cryptocurrencies, and Bitcoin in particular, have largely moved in line with equities markets during the market upheaval since President Donald Trump on April 2 announced he would implement sweeping tariffs. China, Canada and the European Union have since responded with levies of their own, which further deepened the global selloff.However, if macro conditions improve and it looks like the U.S. can avoid a recession, that could ignite cryptos. Signs that the Federal Reserve will speed up cuts in interest rates could also give cryptocurrencies a boost, driving investors toward riskier assets like cryptos. The Fed next meets on May 6-7.Write to Elsa Ohlen 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.