Bitcoin, Ethereum, Cardano Drop Again. Why Cryptos Are Slumping. — Barrons.com

By George Glover

Bitcoin and other cryptocurrencies were dropping again on Tuesday, extending a poor recent run for digital assets.

The world's largest token was down 1% to $110,347 over the past 24 hours, according to data from CoinDesk. It's now trading 13% off the record price it hit earlier this month.

Other cryptos were also sliding. Cardano slipped 3.2%, Ethereum fell 4%, Solana dropped 5.2%, and XRP was down 0.8% over the past 24 hours, per data from the Kraken crypto exchange.

Digital-asset investors have pivoted out of Bitcoin and into Ethereum in recent weeks, with the latter token hitting a new high on Sunday after Federal Reserve Chair Jerome Powell signaled that the central bank could soon cut interest rates.

Ethereum prices have slid since then due to traders taking profit, but "even after the pullback, liquidity and volumes remain supportive," Kaiko analysts said in a research note on Monday.

Still, investors will be hoping a new Bitcoin catalyst emerges soon. The token didn't bounce much after Powell's speech in Jackson Hole, even though stocks rallied on the prospect of lower rates. Risk assets tend to benefit when borrowing costs fall, because they have more relative appeal compared with interest-yielding investments such as bonds.

Write to George Glover at george.glover@dowjones.com

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