XRP (CRYPTO: XRP) is losing ground in Tuesday's trading. The cryptocurrency's token price was down 5.6% over the past 24 hours, as of 4:30 p.m. ET. Meanwhile, the price of Bitcoin was down 5.4%, and the price of Ethereum was down 8.2%.
XRP's token price is falling in conjunction with the latest round of economic data from the U.S. Bureau of Labor Statistics (BLS). The cryptocurrency is also being pressured by rising U.S. Treasury bond yields.
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XRP tumbles on jobs data and rising Treasury yields
The BLS published its latest Job Openings and Labor Turnover Summary (JOLTS) report this morning, and the results helped kick off an uptick in bearish market sentiment. The JOLTS report showed that there were 8.1 million job openings in November, coming in ahead of the 7.7 million that had been forecast by analysts. The job opening numbers also represented a significant jump from the 7.8 million openings that had been recorded in October.
While JOLTS reports aren't typically major market movers, investors may be looking at the numbers as an indication that job creation numbers will come in higher than anticipated. Creating more jobs might typically be seen as a good thing, but it can also be an indication that economic activity is running hot. With the report, U.S. Treasury yields moved higher -- and the increase caused big valuation pullbacks for cryptocurrencies, including XRP and growth stocks.
What comes next for XRP?
XRP's token price will likely continue to be heavily shaped by the overall macroeconomic backdrop. Expectations for continued interest rate cuts have been a major catalyst in the current crypto bull market, and performance in the broader space will be impacted by inflation trends.
The other big catalyst for XRP on the horizon is the upcoming change in presidential administrations. President-elect Trump will take office later this month, and crypto investors are looking for him and his team to usher an unprecedentedly favorable backdrop for cryptocurrencies. The political shift could have particularly important implications for Ripple and its XRP token.
In conjunction with Trump taking office, Securities and Exchange Commission (SEC) chairman Gary Gensler is poised to step down from his role and be replaced by former Commissioner Paul Atkins. With the change in SEC leadership, some investors are hoping that Atkins will drop the regulatory agency's long-standing case alleging that Ripple sold XRP as an unregistered security. If the case were finally to be wrapped up, it could pave the way for the token to see more big gains.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
