Bitcoin, Ethereum, XRP Drop Further. Why the Crypto Rebound Fizzled Out.

Bitcoin hit a record high of more than $126,000 earlier in October. ROMAIN COSTASECA/Hans Lucas/AFP via Getty Images

Key Points

• Bitcoin’s price decreased by 2.9% over 24 hours to $107,855, trading 14% below its recent all-time high.
• Other cryptocurrencies also declined, with Ether down 4.4%, XRP dropping 2.6%, and Solana falling 4.6%.
• The total cryptocurrency market value is about $3.6 trillion.

The price of Bitcoin fell Tuesday as the cryptocurrency rebound proved short-lived.

Bitcoin fell 2.9% over the past 24 hours to $107,855, according to CoinDesk data. The world’s largest crypto is now trading about 14% below its record high hit earlier this month.

Ethereum was down 4.4%, XRP dropped 2.6%, and Solana fell 4.6%. Meanwhile, futures tracking the S&P 500 and Nasdaq fell 0.1% each.

Further pressuring cryptos was an increase in the dollar index , up 0.3% against a weighted basket of other currencies early Tuesday. A stronger dollar typically acts as a headwind for cryptos.

The total value of the cryptocurrency market is now down to about $3.6 trillion. “The bulls failed to push the market above the recent highs of $3.95 trillion, and we are seeing the formation of an active short-term downtrend,” noted FxPro analyst Alex Kuptsikevich. “This will be confirmed if the next local low is $3.35 trillion.”

Over the past year, the crypto market capitalization soared past the $4 trillion mark, helped by the Trump administration’s crypto-friendly policies, increased institutional demand, and efforts to provide clarity on regulation for the asset class.

Write to Elsa Ohlen at elsa.ohlen@barrons.com