Crypto markets are already in turmoil this Monday morning in Asia, with key US economic reports set to influence the markets further this week. A busy calendar of events, including GDP and inflation data, has raised concerns that the downward trend in crypto markets could continue. Following the positive market reaction to Donald Trump’s inauguration last week, with Bitcoin reaching an all-time high on January 20, the mood has since shifted as markets face fresh uncertainties.
Economic Data on the Horizon Could Influence Crypto Trends
This week will bring several significant economic releases, including Consumer Confidence data on Tuesday and the first Federal Reserve meeting of 2025 on Wednesday. These could shed light on future monetary policies under the new administration. On Thursday, the preliminary Q4 GDP Growth Annualized report will be released, with economists predicting a slowdown in growth from 3.1% to 2.7%. A stronger-than-expected reading could dampen hopes of rate cuts, while a weaker result could bolster those expectations.
Friday’s release of December’s Core Personal Consumption Expenditures (PCE) report will provide additional insights into inflation, as the data measures the average amount consumers spend monthly and is a key metric for Fed policymakers.
Crypto Market Takes a Hit as Investors Brace for Impact
Crypto markets are already feeling the pressure, with market capitalization dropping by 5.3% in just six hours, losing $175 billion and pushing the total market cap to $3.56 trillion. In the past 24 hours, 228,000 traders were liquidated, amounting to $615 million in wrecked positions, according to Coinglass.
Bitcoin, which had soared recently, led the drop, falling more than 5% to just under $100,000 during the Monday morning Asian trading session. Ethereum performed even worse, with a decline of over 6%, bringing it down to $3,100. Other altcoins, including Solana (SOL), Dogecoin (DOGE), and Sui (SUI), also saw significant losses.
As traders monitor the economic data and global market trends, crypto markets face a volatile week, with investors awaiting clarity on how the US economic outlook will shape future decisions in the digital asset space.
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