XRP Price Drops Again. Why Bitcoin and Other Cryptos Have a New Catalyst. — Barrons.com
By Callum KeownBitcoin, XRP, and other coins were falling again Thursday as the crypto market suffered amid rising bond yields.XRP, the token used to settle transactions on Ripple Labs' digital payments platform, fell 1% to $2.32, according to data from Kraken, the crypto exchange. It remains 12% up so far in 2025, though, after a strong start to the year and up 338% over the past 3 months as part of a post-election rally.Bitcoin's start to the year hasn't been as good. The world's largest cryptocurrency has been volatile falling to $93,500 early Thursday, having reached close to $102,000 at one point on Tuesday. The digital asset's first move above $100,000 since Dec.19 has ended in the same manner as its last stint above the milestone--with a sizable pullback.In fact, it's Bitcoin's worst two-day performance since Dec.18 and Dec.19 when it fell 10% after reaching an all-time high of more than $106,000. It's largely flat so far this year following the recent drop.The cryptocurrency's apparent inability to hold steady above $100,000 may be a worry. It's particularly concerning that this latest drop coincides with rising bond yields following stronger-than-expected U.S. economic data.Trump's return to the White House could inject some positivity into the crypto market, especially if any of his early policies or appointments are friendly for the sector. But for now, Bitcoin and other digital assets seem to be exposed to broader economic factors."[Bitcoin] may need to find a floor and consolidate further before buyers return. Unless, of course, there's a significant boost in overall market appetite," Trade Nation analyst David Morrison said in a note Wednesday.Ether, the second-largest cryptocurrency, was trading at $3,315 early Thursday, around 1% lower over the past 24 hours, while Solana was 2% down and Dogecoin was 3% lower.The yield on the 10-year Treasury note fell slightly to 4.681% Thursday, up from 4.568% a week ago and 4.275% a month ago as traders have priced in fewer rate cuts in 2025. The recent rise has hurt stocks and also seems to be hitting cryptocurrencies too.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.