The cryptocurrency markets have plummeted to their lowest points in 2025 as U.S. President Donald Trump intensified his trade conflict over the weekend, imposing significant tariffs on Canada, Mexico, and China.
Last week, Jerome Powell, the chair of the Federal Reserve, indicated that policymakers did not feel an urgent need to lower interest rates, keeping them steady within a range of 4.25% to 4.5%.
He emphasized the need for a stronger regulatory framework around cryptocurrencies while advising banks to avoid cutting ties with crypto customers.
This week, critical labor market data is set to be released, which could influence market sentiment following a substantial sell-off on Monday.
Economic Events From February 3 to 7
On Monday, January’s ISM Manufacturing PMI (Purchasing Manager’s Index) report will be published, which gauges business conditions within the U.S. manufacturing industry. This data is viewed as a reliable leading indicator of overall economic health.
On Tuesday, the JOLTS Job Openings report will be issued, followed by the non-farm employment data on Wednesday. Additionally, Friday’s jobs report will outline the number of new jobs added in the previous month and the proportion of individuals actively seeking employment.
The ISM Services PMI report for January is also scheduled for release on Wednesday, offering insights into business conditions in the services sector, which accounts for over 70% of the U.S. GDP.
Key Events This Week:
1. OPEC’s First Meeting of 2025 – Monday
2. ISM Manufacturing PMI data – Monday
3. JOLTS Job Openings data – Tuesday
4. ADP Nonfarm Employment data – Wednesday
5. January Jobs Report – Friday
6. 20% of S&P 500 companies report earnings
This week is…
— The Kobeissi Letter (@KobeissiLetter) February 2, 2025
In addition to economic data, this week will also see significant earnings reports from approximately 20% of S&P 500 companies, including major players like Alphabet (Google), PayPal, AMD, Amazon, and MicroStrategy.
Crypto Markets in Decline
Total cryptocurrency market capitalization has plummeted by an astounding 12% in the last 24 hours, with over $450 billion withdrawn from the sector. This dramatic sell-off represents the largest downturn since mid-December, with markets reverting to levels not seen since mid-November.
Bitcoin experienced a decline to $91,500 during the Monday morning trading session in Asia, marking its lowest value in three weeks. Meanwhile, altcoins have faced even steeper declines, with the entire top twenty cryptocurrencies recording double-digit losses as the sell-off gathered pace.
Ethereum has seen three months’ worth of gains evaporate, dropping to pre-U.S. election levels below $2,500, while XRP has suffered a staggering 27% fall, sliding back to $2 in just a few hours.
Other cryptocurrencies, including Dogecoin, Cardano, Chainlink, Stellar, Avalanche, Sui, Toncoin, and many others, are also experiencing losses of more than 20% on the day.
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