As the new month begins, financial markets are already experiencing significant turmoil. The cryptocurrency sector has been hit particularly hard, reaching its lowest levels in 2025 due to heightened economic and geopolitical uncertainty.
Over the weekend, President Donald Trump intensified trade tensions by imposing substantial tariffs on Canada, Mexico, and China. At the same time, Federal Reserve Chair Jerome Powell signaled no urgency to lower interest rates, keeping them steady at 4.25%–4.5%. He also emphasized the need for stronger regulatory oversight in the crypto industry while cautioning banks against unfairly cutting off crypto-related businesses.
With a crucial week ahead, here are three major factors that could further influence the crypto market.
1. Critical Economic Data Releases
Several key economic indicators set to be released this week could significantly impact investor sentiment, especially in the wake of Monday’s market downturn.
• Monday: The ISM Manufacturing PMI report will provide insight into the current state of the U.S. manufacturing sector, which is a strong indicator of overall economic health.
• Tuesday: The JOLTS Job Openings report will shed light on labor demand across industries.
• Wednesday: The release of Nonfarm Employment Data will highlight trends in job growth. Additionally, the ISM Services PMI report will offer an outlook on the services sector, which accounts for over 70% of the U.S. economy.
• Friday: The U.S. Jobs Report will summarize employment changes, including the number of new jobs created and the current unemployment rate.
These economic reports are crucial, as they influence monetary policy decisions and market movements.
2. Major Corporate Earnings Reports
This week also brings a series of high-profile earnings reports, with 20% of S&P 500 companies set to announce their financial results. Among them are tech giants such as Alphabet (Google), Amazon, PayPal, AMD, and MicroStrategy—some of which have direct exposure to cryptocurrency. Positive or negative earnings data could have ripple effects across both traditional markets and the crypto space.
3. Crypto Market Sell-Off and Recovery Prospects
The cryptocurrency market has seen a sharp decline, with total market capitalization dropping 12% in the past 24 hours. This steep sell-off—one of the most severe since mid-December—has wiped out over $450 billion from the market, dragging prices back to mid-November levels.
Bitcoin fell to $91,500 during early Monday trading in Asia, marking a three-week low. However, the most significant losses were seen among altcoins, with nearly all of the top 20 cryptocurrencies experiencing double-digit declines.
• Ethereum (ETH) erased three months of gains, falling below $2,500.
• XRP plunged 27% to reach $2 in just a few hours.
• Other major digital assets, including Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), Stellar (XLM), Avalanche (AVAX), Sui, and Toncoin, also recorded losses exceeding 20%.
With the market in freefall, investors are closely monitoring whether prices will stabilize or if further declines are ahead.
Conclusion
The coming week will be crucial for the cryptocurrency market, with macroeconomic data, corporate earnings, and post-sell-off sentiment driving market trends. As uncertainty remains high, traders should prepare for ongoing volatility in the days ahead.
