Crypto Chaos: Will This Week’s Economic Data Send Bitcoin to the Moon or the Abyss? 🚀💸

by

Ah, the crypto markets, those tempestuous seas of digital currency, find themselves awash in a crimson tide this fine Monday morn in Asia. One cannot help but wonder if the key economic revelations from the United States this week shall send them spiraling further into the abyss of despair.

Last week, the markets danced with glee at the inauguration of the illustrious Donald Trump, as Bitcoin reached heights previously thought to be the stuff of dreams on January 20. Yet, alas, the fabric of this euphoria appears to be unraveling faster than a cheap suit at a high-society gala.

Our dear President Trump, in his infinite wisdom, has vowed to demand cuts from the Federal Reserve, should the price of oil take a nosedive. However, whether this grand ambition shall bear fruit remains as uncertain as the moral compass of a politician.

“Meanwhile, we are just six days out from the February 1st tariff start date Trump set last week,” cautioned the ever-watchful Kobeissi Letter. A delightful reminder that chaos is but a heartbeat away.

Economic Events Jan. 27 to 31

On Tuesday, we shall be graced with the Consumer Confidence data, followed by the first Fed meeting of 2025 on Wednesday. One can only hope this gathering of monetary minds will shed light on the future under a new administration, or at least provide some entertainment.

Thursday brings forth the fourth quarter GDP Growth Annualized advance estimate, a report that promises to reveal whether our economic growth has slowed to a mere 2.7% from the previous 3.1%. A higher-than-expected reading could send the Fed into a tizzy, while a lower one might just give them the ammunition they need for those coveted rate cuts.

And let us not forget the December Core Personal Consumption Expenditures (PCE) report, due on Friday. This delightful morsel of data reflects the average amount of money consumers spend monthly, serving as the Fed’s favorite gauge of inflation—because who doesn’t love a good inflation gauge?

Key Events This Week:

1. December New Home Sales data – Monday

2. CB Consumer Confidence data – Tuesday

3. First Fed Meeting of 2025 – Wednesday

4. Q4 2024 GDP data – Thursday

5. December PCE Inflation data – Friday

6. ~20% of S&P 500 companies report earnings

Are you…

— The Kobeissi Letter (@KobeissiLetter) January 26, 2025

In a week of grand earnings, the tech titans, those ‘Magnificent 7’, prepare to unveil their treasures. Microsoft, Meta Platforms, and Tesla are set to reveal their riches on Wednesday, while Apple will grace us with its presence on Thursday. How thrilling!

Crypto Market Tanks

In a most dramatic turn of events, the crypto market capitalization has plummeted by a staggering 5.3% in the past six hours, as $175 billion has fled the scene, leaving it at a mere $3.56 trillion. One can only imagine the panic among the traders, akin to a cat in a room full of rocking chairs.

In the last 24 hours, a staggering 228,000 traders have been liquidated, with total wrecked positions amounting to $615 million, according to the ever-reliable Coinglass. Truly, a spectacle worthy of the finest tragedy.

Bitcoin, that once-mighty titan, has succumbed to the pressures of the market, falling just over 5% to hover precariously below $100,000. Meanwhile, Ethereum, ever the underdog, has fared even worse, plummeting more than 6% to a paltry $3,100. The altcoins, bless their hearts, are a veritable sea of red, with Solana (SOL), Dogecoin (DOGE), and Sui (SUI) leading the charge into the depths of despair.

Read More

2025-01-27 09:19