Bitcoin Price, Ether, XRP Fall. 2 Reasons for the Crypto Pullback — Barrons.com

By Adam Clark

Bitcoin and other cryptocurrencies were falling on Monday, continuing a pullback from last week's record highs as traders were weighing the likely path for the Federal Reserve.

Bitcoin's price was down 2.5% over the past 24 hours early on Monday, at around $115,401.

The world's largest cryptocurrency hit a new high of more than $124,000 last week amid optimism over interest-rate cuts. Lower rates make risky assets such as stocks and digital assets more attractive relative to lower-yielding investments such as bonds. Reduced rates also tend to weaken the dollar, which boosts crypto valuations.

However, digital assets have dropped back in recent days after wholesale price data damped optimism for lower rates and Treasury Secretary Scott Bessent said the U.S. doesn't plan to acquire more crypto assets for its Bitcoin reserve.

Several large altcoins were falling. Ether fell 5.7%, XRP dropped 5.3% and Solana was down 6.2%. Dogecoin, which is a memecoin, was losing 5.6%.

"Bitcoin's recent pullback after reaching an all-time high highlights the significant impact of macroeconomic indicators on the cryptocurrency market. Short-term volatility contrasts with a backdrop of rising institutional adoption and increasingly sophisticated corporate strategies," wrote Antonio Di Giacomo, markets analyst at XS.

That means the most likely drivers for crypto prices this week will be comments from Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium, alongside minutes to the Fed's most recent meeting.

Write to Adam Clark at adam.clark@barrons.com

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