The cryptocurrency market has fallen by 2.66% in 24 hours, reaching a total value of $2.58 trillion. The liquidation of a leveraged position of 704 million dollars triggered intense selling pressure.
The price of Bitcoin fell below $80,000 and Ethereum is trading below $2,300. Major altcoins like XRP and ADA have also recorded significant losses.
This could be considered one of the largest declines in the cryptocurrency market this year. Analysts note that it has a 63% correlation with gold, indicating that macroeconomic laws are at play.
Cryptocurrency market events to watch this week
This week, financial markets are preparing for a wave of crucial economic data and political news that could generate significant volatility. Investors and analysts are constantly attentive to the calendar, with events such as the U.S. economic reports and other key announcements from the Federal Reserve.
◽Major economic releases in the U.S.
Monday starts with the publication of the January ISM Manufacturing Purchasing Managers' Index (PMI). Analysts expect a slight increase, with an estimated figure of 48.3, compared to 47.9 in December. This data is essential for assessing the health of the U.S. manufacturing sector.
The Federal Open Market Committee (FOMC) announced on Wednesday its decision to maintain the federal funds rate between 3.50% and 3.75%. The next FOMC meeting will take place on March 17 and 18, 2026.
The most important data of the week is expected on Friday: the Employment Situation Summary in the U.S. from the Bureau of Labor Statistics. The January employment report will be published at 8:30 a.m. ET, and it is expected that the number of new jobs will be 55,000, with an unemployment rate that will remain at 4.4%.
◽Liquidity injections and transition of the Federal Reserve chairman
The Federal Reserve discreetly injected $6.9 billion into the financial system through the purchase of Treasury bills. This is a larger-scale liquidity operation, to which other injections will follow until early February. The central bank is working to stabilize financial conditions amid ongoing concerns over funding difficulties.
Meanwhile, Kevin Warsh has been appointed by President Donald Trump to become the new chairman of the Federal Reserve, replacing Jerome Powell.
His future leadership already raises controversy over the future of the Fed, in terms of balance sheet manipulation and overall monetary policy. Warsh is expected to take office in May 2026, subject to confirmation.
◽Global and regional highlights
On Thursday, the markets will evaluate the recent revision of the Federal Reserve's balance sheet. Saturday closes the week with the publication by China of its most recent figures on monetary reserves, another key indicator of the global liquidity situation. All these events in just one week keep the markets on alert, and strong price fluctuations could be experienced.
