4 Things That Could Continue to Shake the Cryptocurrency Market Next Week

This morning, the market is reacting to Europe’s retaliatory move against Donald Trump’s trade tariff announcement over the weekend. The cryptocurrency market dropped sharply by 3% in a few hours, losing $115 billion, down to $3.21 trillion, mainly due to Bitcoin falling below $92,000 on some exchanges. Trump’s announcement of a 10% tariff on eight European countries led to an emergency meeting of EU leaders on Sunday. French President Emmanuel Macron is said to have requested the bloc to activate the so-called anti-coercion tool, often referred to as a “trade weapon,” which could restrict the US’s access to the European market. Economic reports on GDP and inflation further increased volatility this week, which could make the market even more unstable. Economic Events from January 19 to 23 The US traditional (TradFi) financial markets closed on Monday for Martin Luther King Jr. Day, a national holiday, so there may be a delayed reaction on Tuesday when the cryptocurrency market experienced a sharp decline. Important data will be released on Thursday along with the Q3 GDP report and the delayed November Personal Consumption Expenditures (PCE) inflation data. Policy makers will closely monitor the inflation index this week after last week’s CPI report showed inflation continued to decline. This report will be published ahead of the Federal Reserve (Fed) meeting next week, amid a divide among monetary policymakers on whether to continue lowering interest rates. In Asia, the focus will be on interest rate decisions from China’s central bank on Tuesday and Japan’s on Friday. About 10% of S&P 500 companies will announce earnings this week, and the World Economic Forum in Davos, Switzerland, also begins this week, so get ready! Cryptocurrency Market Plummets Bitcoin once again moves counter to gold as its value drops more than $3,500 within a few hours of trading on Monday morning in Asia. After a weekend of correction around the $95,000 level, BTC fell nearly 3% to a weekly low of $92,280 and has not yet recovered at the time of writing. Ethereum also declined sharply but remained above $3,200. As usual, the altcoin market continued to see significant declines, with XRP, Solana, Dogecoin, and Cardano experiencing large drops. Only Monero moved against the trend with a 10% increase in a day, reaching $615.