The cryptocurrency market has decreased by 2.66% in the last 24 hours, with a total value of $2.58 trillion. The liquidation of leveraged positions worth $704 million has caused strong selling pressure.
Bitcoin's price has dropped below $80,000 and Ethereum is trading under $2,300. Leading altcoins, such as XRP, ADA, BNB, SOL, and DOGE, have also reported significant losses.
This can still be considered one of the biggest collapses in the cryptocurrency market this year. Analysts have observed that it correlates with gold at 63%, indicating that macroeconomic laws are at play.
Throughout the week, investors are closely watching upcoming cryptocurrency events in hopes that the market will recover or continue to decline.
Cryptocurrency market events to watch this week
This week, financial markets are preparing for a series of important economic data and policy developments that could cause significant volatility. Investors and analysts are continuously monitoring the calendar, with events including U.S. economic reports and other important announcements from the Federal Reserve.
Key U.S. economic releases ahead
Monday starts with the release of the ISM Manufacturing Purchasing Managers' Index (PMI) for January. Analysts expect a slight increase, with the estimated figure at 48.3, compared to December's 47.9. This data is essential for assessing the health of the U.S. manufacturing sector.
The Federal Open Market Committee (FOMC) announced that they decided to keep the federal funds rate at 3.50%-3.75% on Wednesday. The next FOMC meeting will be held on March 17-18, 2026.
The biggest data of the week is expected on Friday: U.S. Labor Statistics summary of employment. The January jobs report will be released at 8:30 AM Eastern Time, and the number of new job positions is predicted to be 55,000, with the unemployment rate expected to remain at 4.4%.
Liquidity injection and transition of Fed Chair
On Tuesday, the Federal Reserve quietly injected $6.9 billion into the financial system through Treasury bill purchases. This is a larger liquidity operation, which will be further injected until early February. The central bank is working to stabilize financial conditions after ongoing concerns about financial stress.
Meanwhile, Kevin Warsh has been appointed by President Donald Trump as the new Chair of the Federal Reserve, replacing Jerome Powell.
His future leadership has sparked controversy over the Fed's future trajectory, regarding balance sheet manipulation and overall monetary policy. It is predicted that Warsh will take over in May 2026, pending confirmation.
Global and regional highlights
On Thursday, the market will assess the Fed's recent balance sheet adjustment. Saturday concludes the week when China releases its most recent monetary reserve figures, another key metric of global liquidity conditions. All these developments within a short week make the market cautious and could experience significant price volatility.
