3 Things That Could Impact Crypto and Bitcoin Prices This Week

The crypto market selloff continued over the weekend as investors were rattled by US President Trump’s pick for the Federal Reserve chair.

The new Fed chair, Kevin Warsh, is viewed as hawkish and may not cut interest rates as fast or as much as investors expected, given his stance on inflation.

“It’s all about the labor market and earnings this week,” said the Kobeissi Letter, which also observed that “earnings season is in full swing and macroeconomic uncertainty is elevated.”

Economic Events Feb. 2 to 6

Monday kicks off the week with the January ISM Manufacturing PMI data report, which sheds light on the health of the US manufacturing sector.

The big week for labor market data begins on Tuesday with the December JOLTS Job Openings data, followed by the Initial Jobless Claims report on Thursday, and the January Jobs Report on Friday.

Following the Fed meeting last Wednesday, markets are now pricing ‍in the central bank to hold off on further rate cuts until June, although any surprise weakening in the labor market could sway those expectations, the report added.

Another big batch of corporate earnings, including from the ‘Magnificent 7’ pair Alphabet and Amazon, will test stock markets this week after ​a disappointing report from Microsoft.

Crypto Markets Hit Yearly Lows

More than $250 billion exited spot crypto markets over the weekend, dropping total capitalization to $2.67 trillion, its lowest levels since April 2025.

All gains over the past nine months have now been erased as markets enter bear market territory, and the four-year cycle pattern appears to remain intact.

Bitcoin tanked to a nine-month low, briefly dipping below $76,000 during the Monday morning trading session in Asia. The fall has dropped it 40% from its all-time high.

Ether prices are back at bear market lows, collapsing 14% over the weekend low to $2,250, their lowest level since May 2025.

The altcoins have been obliterated, with most of them now down 70% to 80% from their peaks as panic selling continues into another week.

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