Key Factors Influencing Cryptocurrency and Bitcoin Prices This Week
The cryptocurrency market experienced a dip over the weekend, and various economic indicators and events may contribute to future volatility.
The cryptocurrency market selloff persisted over the weekend, causing concerns among investors particularly due to U.S. President Trump’s selection for the Federal Reserve chair. Kevin Warsh is perceived as a hawkish choice, which raises doubts about the speed and extent of future interest rate cuts.
“It’s all about the labor market and earnings this week,” stated the Kobeissi Letter. It was also noted that “earnings season is in full swing and macroeconomic uncertainty is elevated.”
Economic Events from February 2 to 6
The week will commence with the release of January’s ISM Manufacturing PMI report on Monday, providing insight into the U.S. manufacturing sector’s health. Key labor market data will follow on Tuesday with December’s JOLTS Job Openings data, along with Thursday’s Initial Jobless Claims report, and the January Jobs Report set for Friday.
“We haven’t really gotten a lot of clean looks at the state of the labor market and inflation because of that government shutdown last year, so we think those are going to probably be more important than usual,” said Michael Reynolds from Glenmede to Reuters.
Initially pricing in a hold on further rate cuts until June following the last Fed meeting, markets are keeping a close eye on any unexpected declines in the labor market, which could alter these expectations.
Key Events This Week:
- January ISM Manufacturing PMI data – Monday
- December JOLTS Job Openings data – Tuesday
- Alphabet, $GOOGL, Reports Earnings – Wednesday
- Initial Jobless Claims data – Thursday
- Amazon, $AMZN, Reports Earnings – Thursday
As a result of these developments, the crypto markets have seen significant changes, with over $250 billion leaving spot markets, reducing total market capitalization to $2.67 trillion, the lowest since April 2025. Bitcoin briefly fell below $76,000, a drop of 40% from its peak, while Ether pricing fell to $2,250, the lowest since May 2025.
Related Articles
- Tom Lee Shrugs Off ETH Sell-Off, Says Fundamentals Don’t Match Falling Prices
- Bitcoin Drops Out of Top 10 Global Assets, Falls to 13th
- Raoul Pal Says Bitcoin (BTC) Isn’t Broken: US Liquidity Is the Real Culprit
With intense market reactions and economic indicators on the horizon, volatility is expected to continue into the following weeks.
