Bitcoin, XRP Prices Jump, but Less Than Stocks. Here's Why.
By Elsa OhlenBitcoin and other cryptocurrencies jumped early Thursday, mirroring global stocks which were surging in relief from President Donald Trump's 90-day pause of some tariffs.Bitcoin was up 5.6% to $82.027 over the past 24 hours, according to CoinDesk data.The popular altcoin XRP surged 9.1%, again breaking the milestone level of $2 late Wednesday. XRP is used on Ripple Labs' online payment platform to facilitate and settle transactions.Over the last few days of market turmoil Bitcoin has been less volatile than stocks, breaking from its previous pattern where the digital coin has typically seen larger price swings than equities. The S&P 500 rallied 9.5% Wednesday while the Nasdaq Composite soared 12%. Futures on the S&P 500 pointed around 1.8% lower early Thursday.FxPro analyst Alex Kuptsikevich said Bitcoin has proved more resilient amid tariff turbulence in markets than during previous crises, citing Bernstein. Crypto analysts often point to Bitcoin as a macro hedge."The price action highlights crypto's hyper-democratic and borderless nature, allowing investors worldwide to hedge against the potential impact of macroeconomic uncertainties — like tariffs — on their equity holdings," David Hernandez, Associate Investment Specialist at 21Shares, said last week.Yet, Bitcoin and other cryptos tend to fall when economic conditions worsen, putting investors off riskier assets. It has led many to question its status as "digital gold."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.