Crypto markets brace for volatility as key events unfold
Press Hub UCapital
Share:
The crypto market is set for another turbulent week as major economic reports and geopolitical developments weigh on sentiment. Last week’s mixed economic data pointed to a robust economy and persistent inflation, reinforcing the Federal Reserve’s cautious stance on rate cuts. Alongside inflation reports, President Trump’s tariff policies could further disrupt financial markets.
Key events shaping crypto markets this week
Trump’s reciprocal tariff announcement (Monday)
The U.S. will impose 25% tariffs on all steel and aluminum imports, including those from Canada and Mexico. Trump is expected to unveil reciprocal tariffs by midweek, which could escalate global trade tensions and impact risk assets like Bitcoin and Ethereum.
FED chair Powell’s congressional testimony (Tuesday/Wednesday)
Jerome Powell will present the semi-annual monetary policy report to congress. Any hawkish stance could push the U.S. Dollar higher, potentially weighing on crypto prices.
U.S. consumer price index (CPI) inflation data (Wednesday)
This key inflation gauge will influence the FED’s interest rate outlook. A hotter-than-expected CPI could spark speculation that the FED will delay rate cuts, dampening risk sentiment in crypto markets.
Producer price index (PPI) inflation data (Thursday)
PPI measures input costs for producers and serves as a leading indicator for consumer price inflation. A higher reading could reinforce inflation concerns, pushing investors toward safe-haven assets like gold and U.S. treasuries, rather than crypto.
U.S. retail sales report (Friday)
Consumer spending remains a crucial driver of the economy. A strong retail sales report would suggest economic resilience, reducing the urgency for the FED to cut rates.
Crypto market reaction: selling pressure intensifies
Total crypto market capitalization has fallen over 3% to $3.23 trillion as of monday morning: Bitcoin (BTC) dipped below $95,000 on sunday before recovering to $97,000. The asset has remained volatile as traders await U.S. economic data; Ethereum (ETH) fell 2.4%, touching a low of $2,575 before rebounding above $2,630. the second-largest cryptocurrency has lost around 20% over the past two weeks, despite positive developments; Altcoins have suffered deeper declines, with XRP, Dogecoin, Cardano, Stellar, Shiba Inu, and SUI posting losses.
Outlook: volatility expected to persist
With high-impact economic reports and Trump’s tariff policies driving uncertainty, crypto markets are likely to experience heightened volatility throughout the week. Traders should closely monitor macroeconomic data and fed commentary for further clues on market direction.
Key events shaping crypto markets this week
Trump’s reciprocal tariff announcement (Monday)
The U.S. will impose 25% tariffs on all steel and aluminum imports, including those from Canada and Mexico. Trump is expected to unveil reciprocal tariffs by midweek, which could escalate global trade tensions and impact risk assets like Bitcoin and Ethereum.
FED chair Powell’s congressional testimony (Tuesday/Wednesday)
Jerome Powell will present the semi-annual monetary policy report to congress. Any hawkish stance could push the U.S. Dollar higher, potentially weighing on crypto prices.
U.S. consumer price index (CPI) inflation data (Wednesday)
This key inflation gauge will influence the FED’s interest rate outlook. A hotter-than-expected CPI could spark speculation that the FED will delay rate cuts, dampening risk sentiment in crypto markets.
Producer price index (PPI) inflation data (Thursday)
PPI measures input costs for producers and serves as a leading indicator for consumer price inflation. A higher reading could reinforce inflation concerns, pushing investors toward safe-haven assets like gold and U.S. treasuries, rather than crypto.
U.S. retail sales report (Friday)
Consumer spending remains a crucial driver of the economy. A strong retail sales report would suggest economic resilience, reducing the urgency for the FED to cut rates.
Crypto market reaction: selling pressure intensifies
Total crypto market capitalization has fallen over 3% to $3.23 trillion as of monday morning: Bitcoin (BTC) dipped below $95,000 on sunday before recovering to $97,000. The asset has remained volatile as traders await U.S. economic data; Ethereum (ETH) fell 2.4%, touching a low of $2,575 before rebounding above $2,630. the second-largest cryptocurrency has lost around 20% over the past two weeks, despite positive developments; Altcoins have suffered deeper declines, with XRP, Dogecoin, Cardano, Stellar, Shiba Inu, and SUI posting losses.
Outlook: volatility expected to persist
With high-impact economic reports and Trump’s tariff policies driving uncertainty, crypto markets are likely to experience heightened volatility throughout the week. Traders should closely monitor macroeconomic data and fed commentary for further clues on market direction.