The week has kicked off with considerable market fluctuations, and such volatility is expected to continue throughout the next five business days.

Markets are bracing for the recent threats of tariffs from President Donald Trump as well as the potential for a government shutdown in the US. The Federal Reserve will also conduct a meeting this week to decide on interest rates, in addition to a fresh batch of inflation data.

“Buckle up for a huge week ahead,” cautioned the Kobeissi Letter, which indicated that significant volatility is anticipated.
Translation: “Prepare for a challenging week with market shifts.”

Key Economic Events This Week

President Donald Trump recently threatened Canada with a 100% tariff if they proceed with negotiations with China. However, Prime Minister Mark Carney of Canada stated that there are no intentions to enter into a trade agreement with China, calming some investor unease.

In addition, there are concerns that the US government may face a partial shutdown as Senate Democrats indicate they will reject a new funding proposal.

“Government funding expires at the end of the week, and Republicans are determined to not have another government shutdown,” sources informed CNBC.
Translation: “Funding must be secured soon to prevent another shutdown.”

On the economic data side, the Consumer Confidence report from January is set to be released, providing fresh insights into consumer attitudes.

Additionally, this week’s Federal Reserve interest rate decision will be closely monitored. As of now, there is a 97% probability of rates remaining stable, according to predictions from CME Group.

The Producer Price Index (PPI) inflation statistics from December will also be published on Friday, providing further data on pricing trends affecting producers nationwide.

Market Overview

As of the latest trading data, cryptocurrency markets are experiencing downward pressure. Bitcoin has retreated to around $86,000, its lowest price in five weeks, before a slight recovery to $87,700. This level is critical; if breached, it may signal the start of a full-blown bear market.

Ether is also facing downward trends, dipping below $2,800 with limited signs of recovery. The altcoin market is currently undergoing retraction, following predictable patterns of decline.