YEREVAN (CoinChapter.com) — Critical US economic data, including US GDP and inflation data reports, will dominate the week. Crypto markets, already struggling, face potential volatility.
Crypto Markets Face Heavy Losses
Global crypto markets dropped sharply early Monday during Asian trading. Market capitalization fell by 5.3% in just six hours, shedding $175 billion and reaching $3.56 trillion, according to Coinglass.
Bitcoin recorded a 5% decline, trading just below $100,000. The price is steadily approaching the $98,500 support level, indicating continued selling pressure.
Ethereum experienced a larger drop of more than 6%, sliding to $3,082.
Other cryptocurrencies, such as Solana (SOL), Dogecoin (DOGE), and Sui (SUI), posted steeper losses.
Over the past 24 hours, nearly 228,000 traders were liquidated, with total losses amounting to $615 million. These figures highlight the significant impact of market volatility on traders and investors.
Key Economic Events to Watch
The week features important U.S. economic updates that may influence global markets. On Tuesday, Consumer Confidence data will offer insight into public sentiment. This will be followed by the Federal Reserve’s first meeting of 2025 on Wednesday, which could provide signals regarding future monetary policies.
On Thursday, the Q4 US GDP Growth Annualized advance estimate will be released. Projections suggest growth slowed to 2.7%, compared to 3.1% in the previous quarter. A higher figure could affect expectations for interest rate changes, while a lower reading might provide additional support for rate cuts.
The focus shifts to inflation data on Friday, with the release of December’s Core Personal Consumption Expenditures (PCE) report. This key measure of the inflation rate evaluates consumer spending patterns and informs Federal Reserve policymakers about inflationary pressures.
Trump’s Economic Policies Add Uncertainty
Trump has called for Federal Reserve rate cuts if oil prices drop further, but the likelihood of this remains uncertain. Additionally, the February 1 tariff start date set by Trump last week looms large. The Kobeissi Letter emphasized the potential implications, stating,
“We are just six days out from the February 1 tariff start date Trump set last week.”
Digital assets went on a highly volatile ride on Monday morning, with BTC dumping from $106,000 to under $100,000 only to bounce off and register a new all-time high hours later at over $109,000.
Tech Earnings Also in Focus
This week also brings earnings reports from major tech companies. The “Magnificent 7”—including Microsoft, Meta Platforms, Tesla, and Apple—will release revenue data. Microsoft, Meta, and Tesla report on Wednesday, while Apple is set to announce earnings on Thursday.
As these developments unfold, the interaction between economic data, corporate earnings, and market movements will remain a focus for investors monitoring global and crypto markets.
