Last week, Bitcoin hovered around the $89K mark before dipping to the $87K mark this morning, Asia time. Likewise, Ethereum has also sunk to the $2,800 mark on fears of a U.S. government shutdown and the increasing likelihood of the Fed maintaining interest rates.
CoinMarketCap’s Crypto Fear and Greed Index dropped from 45 to 29, indicating increased fear amid last week’s tariff threats and upcoming reports and data.
What Traders Should Watch Out for This Week
With gold officially breaking the $5,000 milestone at the start of this week, acting as a “liquidity vacuum,” the market has become more vulnerable and thinner. Traders are flocking to gold in the absence of alternative safe-haven assets, especially as global investors have started to diversify away from U.S. Treasury bonds.
Furthermore, tech giants such as the “Mag 7”, including Microsoft, Tesla, and Meta, are reporting earnings this week. Digital assets often correlate with high-growth tech stocks, and this earnings season is especially crucial as investors are starting to demand concrete signs of AI monetization.
The FOMC Interest Rate Decision is also happening tomorrow. While markets are pricing in the likelihood that the Fed will maintain rates, traders are waiting to see what the outlook will be for the rest of the year.
Here are the major economic indicators to watch out for this week:
- Jan 26: Durable-goods orders delayed report
- Jan 27: Consumer confidence
- Jan 28: FOMC interest-rate decision
- Jan 29: Initial Jobless Claims, U.S. trade deficit delayed report, U.S. productivity, Wholesale inventories delayed report, and factory orders delayed reports
- Jan 30: Producer price index delayed report, Core PPI, Core, and Chicago Business Barometer (PMI)
