Bitcoin Slips, but XRP and Ethereum Rally. Why Crypto Volatility Is Coming Back.

Cryptocurrencies have struggled over the past month, with investors no longer certain that the Federal Reserve will cut interest rates in December. (MLADEN ANTONOV/AFP via Getty Images)

Bitcoin was sliding on Thursday, although some of its peers were racking up gains as investors try to figure out what’s next for the cryptocurrency sector.

Bitcoin was down 0.5% to $103,673 over the past 24 hours, according to data from CoinDesk. It’s now trading about 22% off the record high it hit back in October.

Other tokens were mixed. Ethereum climbed 2.1%, Solana slid 0.4%, and XRP gained 4.7%.

The choppy trading is a sign of market uncertainty, after President Donald Trump on Wednesday signed a bill to end the longest government shutdown in history. Investors are struggling to work out how big of a catalyst that will be for the market, with stocks also struggling for direction.

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

Created with Highcharts 9.0.1XRPEthereumBitcoinSolanaNov. 10Nov. 13-10.0-7.5-5.0-2.502.55.07.510.012.5%

“Markets are stabilizing… as liquidity cautiously rebuilds across digital and traditional assets,” Iliya Kalchev, an analyst for the crypto wealth platform Nexo, said. “Across markets, risk appetite is returning—but measuredly so.”

The big question for crypto investors is what the Federal Reserve does next. There is a flurry of economic data, which is due out now the government funding impasse has ended. although some may be misssing.

If the data strengthens the case for the central bank to hold interest rates steady next month, then that could weigh on Bitcoin and its peers. When borrowing costs are higher, that makes risk-on assets less appealing relative to yield-bearing investments, such as bonds and savings accounts.

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