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3 Things That Could Impact Crypto and Bitcoin Prices This Week

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3 Things That Could Impact Crypto and Bitcoin Prices This Week


Crypto assets entered bear market territory over the weekend, and more volatility could be ahead 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.

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“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.

“We haven’t really gotten a lot of clean looks at the state of the labor market and inflation because of that government shutdown last year, so we think those are going to probably be more important than ​usual,” Michael Reynolds, vice president of investment strategy at Glenmede, told Reuters.

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.

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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.

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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.

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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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Solana (SOL) Plunges Below $100, Bitcoin (BTC) Recovers From 15-Month Low: Market Watch

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BTCUSD Feb 4. Source: TradingView


Meanwhile, HASH and HYPE have declined the most over the past 24 hours after charting impressive gains lately.

Bitcoin’s adverse price actions as of late worsened yesterday when the asset tumbled to its lowest positions since early November 2024 at $73,000 before recovering by a few grand.

Most altcoins followed suit with enhanced volatility, but some, such as SOL, HYPE, and CC, have been hit harder than others.

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BTC’s Latest Rollercoaster

It was just a week ago when the primary cryptocurrency challenged the $90,000 resistance ahead of the first FOMC meeting for the year. After it became official that the Fed won’t cut the rates again, BTC remained sluggish at first but started to decline in the following hours.

The escalating tension in the Middle East was also blamed for another crash that took place on Thursday when bitcoin plunged to $81,000. It bounced off to $84,000 on Friday but tumbled once again on Saturday, this time to under $75,000. Another recovery attempt followed on Monday, only to be rejected at $79,000.

Tuesday brought the latest crash, this time to a 15-month low of $73,000. It has rebounded since then to just over $76,000, but it’s still 3% down on the day. Moreover, it has lost 14% of its value weekly and a whopping 18% monthly.

Its market capitalization has plummeted to $1.525 trillion on CG, while its dominance over the alts has declined to 57.3%.

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BTCUSD Feb 4. Source: TradingView
BTCUSD Feb 4. Source: TradingView

SOL Below $100

Most larger-cap altcoins have felt the consequences of the violent market crash lately. Ethereum went from over $3,000 to $2,100 in the span of a week, before bouncing to $2,280 as of now. BNB is down to $760, while SOL has plummeted to under $100 after a 7% daily decline.

Even the recent high-flyer HYPE has retraced hard daily. The token is down by 11% to $33. CC and ZEC are also deep in the red, while XMR has gained the most from the larger caps.

The cumulative market cap of all crypto assets has seen more than $70 billion erased in a day and is down to $2.65 trillion on CG.

Cryptocurrency Market Overview Feb 4. Source: QuantifyCrypto
Cryptocurrency Market Overview Feb 4. Source: QuantifyCrypto

 

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Pumpfun Unveils Investment Arm and $3 Million Hackathon

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Pumpfun Unveils Investment Arm and $3 Million Hackathon


PUMP rallied as much as 10% but erased its gains as crypto markets dipped.

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

Assets in spot Bitcoin (BTC) ETFs slipped below $100 billion on Tuesday following a fresh $272 million in outflows.

According to data from SoSoValue, the move marked the first time spot Bitcoin ETF assets under management have fallen below that level since April 2025, after peaking at about $168 billion in October

The drop came amid a broader crypto market sell-off, with Bitcoin sliding below $74,000 on Tuesday. The global cryptocurrency market capitalization fell from $3.11 trillion to $2.64 trillion over the past week, according to CoinGecko.

Altcoin funds secure modest inflows

The latest outflows from spot Bitcoin ETFs followed a brief rebound in flows on Monday, when the products attracted $562 million in net inflows.

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Still, Bitcoin funds resumed losses on Tuesday, pushing year-to-date outflows to almost $1.3 billion, coming in line with ongoing market volatility.

Spot Bitcoin ETF flows since Jan. 26, 2026. Source: SoSoValue

By contrast, ETFs tracking altcoins such as Ether (ETH), XRP (XRP) and Solana (SOL) recorded modest inflows of $14 million, $19.6 million and $1.2 million, respectively.

Is institutional adoption moving beyond ETFs?

The ongoing sell-off in Bitcoin ETFs comes as BTC trades below the ETF creation cost basis of $84,000, suggesting new ETF shares are being issued at a loss and placing pressure on fund flows.

Market observers say that the slump is unlikely to trigger further mass sell-offs in ETFs.

“My guess is vast majority of assets in spot BTC ETFs stay put regardless,” ETF analyst Nate Geraci wrote on X on Monday.

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Source: Nate Geraci

Thomas Restout, CEO of institutional liquidity provider B2C2, echoed the sentiment, noting that institutional ETF investors are generally resilient. Still, he hinted that a shift toward onchain trading may be underway.

Related: VistaShares launches Treasury ETF with options-based Bitcoin exposure

“The benefit of institutions coming in and buying ETFs is they’re far more resilient. They will sit on their views and positions for longer,” Restout said in a Rulematch Spot On podcast on Monday.

“I think the next level of transformation is institutions actually trading crypto, rather than just using securitized ETFs. We’re expecting the next wave of institutions to be the ones trading the underlying assets directly,” he noted.