Markets remain muted after last week’s sharp crash, as Bitcoin stabilized around $70K as of Monday morning Asia time, while Ethereum rebounded from $1,700 to around $2,000.
CoinMarketCap’s Crypto Fear and Greed Index stands at 9, signaling uncertainty after tech stocks declined on AI worries, as well as ongoing regulatory concerns.
What Traders Should Watch Out for This Week
Overall sentiment remains cautious, though many expect a rebound. However, downside risks persist, as thin liquidity and positioning resets could continue to drive volatility.
Funding rates are cooling, and open interest has declined, meaning many traders are still cutting leverage.
In Asia, China reissued guidance tightening the restrictions for overseas crypto and tokenization activities, increasing scrutiny, and reinforcing strict control.
The market is looking forward to China’s CPI and PPI figures this Wednesday, as a fresh look for traders to indicate the next market move.
Meanwhile, Japan’s GDP data will be released this Sunday, adding another macro catalyst as continued US dollar strength caps risk assets globally.
This week’s upcoming U.S. economic data releases are notable in that CPI and employment data will be released in the same week, a rare occurrence:
- Feb 10: NFIB optimism index, Employment cost index, Import price delayed index report, U.S. retail sales delayed report
- Feb 11: U.S. employment report and U.S. hourly wages
- Feb 12: Initial jobless claims and existing home sales
- Feb 13: CPI (YoY) and Core CPI
