Bitcoin, XRP, Ethereum Drop. Why Cryptos Are Under Pressure Today. — Barrons.com
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By Alex Kozul-Wright
The price of Bitcoin has continued to fall even as demand for precious metals has gone the other way.
Bitcoin fell 4% on Wednesday, to around $73,332, but that was up from 52-week lows of around $73,000 Tuesday.
Ethereum and XRP were also down by 6% and 5%, while crypto exchanges Robinhood and Coinbase fell 7% and 6%.
Crypto price declines have come as precious metal prices recovered some of their recent losses. Bitcoin, gold, and silver all fell sharply after President Donald Trump's nomination of Kevin Warsh as the next Fed chair.
The central bank could play a key role in the future direction of Bitcoin, Stifel strategist Barry Bannister said in a note Wednesday.
Bannister noted while the Fed cut rates in October and December last year, Chair Jerome Powell adopted a hawkish tone. "Such 'hawkish cuts' are ominous," for Bitcoin, he added, noting that the world's largest cryptocurrency has tended to fall when the Fed tightens monetary policy.
He also said that historic bear-market trends over the past 15 years pointed to Bitcoin falling as low as $38,000 this year. A 70% drop from its all-time high, adding that it was has already fallen 41% from its record.
While precious metals have attracted buyers again following the recent slump, Bitcoin has not.
"Crypto trades continuously, but much of the capital supporting it is still constrained by slow, pre-funded rails, limiting its ability to absorb stress when volatility spikes," says David Mercer, CEO of LMAX Group .
Adding to crypto market unease is uncertainty over U.S. legislators' attempts to establish a regulatory framework for the digital-asset sector, which continues to be kicked into the long grass.
Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com
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source: https://www.tradingview.com/news/DJN_DN20260204003421:0/