Bitcoin Price Falls Again. Why Cryptos Are Still Down—and What Could Change That.

Bitcoin is trading about 28% off its record high, following a brutal selloff. (MARVIN RECINOS/AFP via Getty Images)

Key Points

• Bitcoin decreased 0.3% to $91,320 over 24 hours and is 28% below its early October record high.
• The probability of a December Federal Reserve rate cut is 47%, a decrease from 94% one month ago.
• Nvidia’s earnings and the September jobs report are key events influencing investor sentiment in risk assets.

The price of Bitcoin dropped again on Wednesday, hovering around the $90,000 mark in late morning trading. Cryptos are staring down a crucial two-day stretch.

Bitcoin was down 3% to $90,202 over the past 24 hours, according to data from CoinDesk. It is now trading about 30% off the record high it hit in early October.

Other tokens traded down too. Ethereum , Solana, and XRP were all down over the past 24 hours.

The selloff in stocks, however, has paused. The S&P 500 is up 0.4%, while the Nasdaq Composite is 0.8% higher.

Created with Highcharts 9.0.1Sources: CoinDesk (BTCUSD, SOLUSD); Kraken​(ETHUSD, XRPUSD)

Created with Highcharts 9.0.1SolanaEthereumBitcoinXRPNov. 16Nov. 19-8-6-4-2024%

Cryptos have slumped in recent weeks, amid a broader selloff in risk assets as investors fret about lofty artificial-intelligence valuations and looming economic data that could lower the chances of the Federal Reserve slashing interest rates in December.

That makes Nvidia’s third-quarter earnings and the September jobs report crucial. If the chip maker’s results and forecast top expectations after the close Wednesday, then that could lead to investors piling back into AI stocks and other risk assets.

Meanwhile, if nonfarm payrolls figures miss expectations on Thursday, then that could strengthen the case for a Fed rate cut next month. When interest rates fall, cryptos tend to rise, as they become more appealing relative to interest-bearing investments, like bonds and savings accounts.

The market is currently pricing in a 47% probability of another cut in December, down from 94% a month ago, according to the CME FedWatch tool.

Investors will also be keeping an eye on results from crypto exchange Bullish, due out ahead of Wednesday’s opening bell.

The CoinDesk owner went public with a blockbuster initial public offering in August, although its shares have slumped since then, sliding about 40% over the past three months amid the crypto selloff.

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