Bitcoin, Ethereum, and XRP Drop Again. Why This Crypto Selloff Is So Severe. — Barrons.com

By George Glover

The price of Bitcoin was dropping again Tuesday, extending a nightmarish run for the world's largest cryptocurrency as investors pivot away from risk-on assets.

The token was down 2.3% to $101,465 over the past 24 hours, according to data from CoinDesk. It's now trading 24% off the record high it hit last month.

Ethereum dropped 5.8%, Solana fell 3.1%, and XRP slipped 2% over the past 24 hours, according to data from the crypto exchange Kraken.

The cryptos tumbled last month after President Donald Trump threatened to hike tariffs on China, then took more losses when Federal Reserve Chair Jerome Powell signaled that a December interest-rate hike wasn't a done deal.

This week, Bitcoin and its peers have fallen further, amid questions about whether the artificial-intelligence rally has made parts of the market overvalued. Cryptos tend to move in tandem with tech stocks and other risk-on assets, so the change in mood has weighed on their prices.

The question now is if the tokens can recover, or if their losses will pile up. One good sign for bulls is that Bitcoin managed to rebound after briefly dipping below $100,000 on Tuesday. That's seen as a key psychological level for short-term traders, who may be tempted to dump their crypto holdings if the selloff continues.

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

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