Key Factors Likely to Influence Crypto Markets in the Upcoming Week

Crypto markets begin the new week with heightened volatility, primarily triggered by the deteriorating trade relations between the United States and the European Union. Recently, crypto assets plummeted by 3%, losing approximately $115 billion and falling to a total market valuation of $3.21 trillion. Bitcoin was particularly affected, dipping below $92,000 on various trading platforms.

The declining market trend followed Donald Trump’s announcement over the weekend, which imposed a 10% tariff on eight European nations. This led to an emergency meeting among EU leaders, where French President Emmanuel Macron urged the bloc to enact an anti-coercion measure, informally known as a “trade bazooka.” This tool is designed to restrict American companies’ market access in Europe.

In addition to these developments, upcoming economic indicators regarding GDP and inflation are expected to stir further market instability.

Economic Events: January 19 to 23

With the US financial markets closed on Monday in observance of Martin Luther King Jr. Day, a delayed response might occur on Tuesday as the crypto market continues to react to recent news.

On Thursday, key economic data will be revealed, including the third-quarter GDP and the postponed November Personal Consumption Expenditures (PCE) inflation metrics. Policymakers will scrutinize the inflation figures closely, especially after recent reports indicating a decrease in inflation.

Significant Events This Week:

Stock Market Futures Response to Trump’s 10% EU Tariffs – Tonight
US Markets Closed for Martin Luther King Jr. Day – Monday
December Pending Home Sales Data – Wednesday
Q3 2025 GDP Information – Thursday
November PCE Inflation Data – Thursday
January S&P Global data…

— The Kobeissi Letter (@KobeissiLetter) tweet link

In the Asian markets, focus will turn to the interest rate decisions from the Chinese central bank on Tuesday and from Japan on Friday. This week will also witness earnings reports from around 10% of S&P 500 companies, alongside the World Economic Forum taking place in Davos, Switzerland, indicating a week filled with significant market catalysts.

Crypto Market Outlook

Bitcoin has continued to diverge from gold trends, experiencing a sharp decline of over $3,500 in initial Asian trading hours on Monday. Following a weekend of consolidation around $95,000, BTC has faced a nearly 3% drop to a weekly low of $92,280, with Ethereum also suffering losses yet staying slightly above the $3,200 threshold. Altcoins have experienced considerable declines, particularly XRP, Solana, Dogecoin, and Cardano, while Monero stands out with a commendable 10% increase today.