Key Factors Possibly Shaping Crypto Markets This Week
A week full of economic developments could significantly impact the cryptocurrency landscape as markets react to tariff changes and economic data releases.
Cryptocurrency markets are facing another troubling week, with Bitcoin plummeting over $3,000 in less than an hour, erasing the gains made over the weekend.
Donald Trump has reignited the tariff battle by enforcing a 15% global tariff following a Supreme Court ruling that deemed his previous tariffs outside his authority.
“Meanwhile, geopolitical tensions remain elevated between the US and Iran, with oil markets on edge,” commented the Kobeissi Letter.
Economic Events for the Week of Feb 23 to 27
The markets are still coming to terms with the newly announced tariffs amid rising geopolitical tensions in the Middle East, prompting a 4% dip in the crypto markets by Monday morning.
On Tuesday, the Consumer Confidence for February will be released, illuminating public sentiment and potential spending these trends could lead towards. In January, consumer confidence dropped to its lowest since 2014 due to concerns over job security at the start of the new year.
Thursday will bring initial jobless claims data, providing insight into the pressures facing the labor market—a crucial consideration for the Federal Reserve’s monetary policy direction. On Friday, January’s Producer Price Index (PPI), a key measure of wholesale inflation, will be made public. No significant shifts in the Fed’s policy approach are expected following these releases.
Significant Events This Week:
- Crypto markets react to Trump’s new 15% global tariff - Monday
- February Consumer Confidence data - Tuesday
- Nvidia reporting earnings - Wednesday
- Initial Jobless Claims - Thursday
- January PPI Inflation data - Friday
The earnings report from Nvidia on Wednesday could potentially impact the AI market if it indicates a decline in demand for the company’s chips, although such an outcome seems improbable.
Crypto Markets Decline Again
Monday has begun with a negative tone as total market capitalization drops by 4%, down to $2.31 trillion. Bitcoin fell from $67,600 to around $65,000 in a short timeframe and continues to hover near this level. The cryptocurrency has experienced a 5% decline for the week and sits at a critical support level within its range.
Ethereum also faced a similar downturn, falling to $1,860, its lowest since February 6, while other cryptocurrencies see more significant downturns, particularly Solana, Cardano, Hyperliquid, and Chainlink.
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