Trade War Fears Loom Over Crypto: 4 Potential Market Movers This Week

• The crypto market cap fell 3% ($115 billion) to approximately $3.11 trillion as Bitcoin dropped below $93,000 on some exchanges.
• Markets are watching upcoming U.S. GDP and PCE inflation data as rate expectations shift ahead of the Fed meeting.

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Crypto markets opened the week under pressure as traders reacted to trade-war tensions between the United States and the European Union. The total market value fell 3% in Monday trading, down $115 billion to nearly $3.11 trillion, with Bitcoin leading the decline after slipping below $93,000 on some exchanges.

Volatility followed President Donald Trump’s weekend announcement of 10% tariffs targeting eight European countries. EU leaders held an emergency meeting on Sunday, and French President Emmanuel Macron was reported to have urged the bloc to consider activating its anti-coercion instrument, dubbed a “trade bazooka.” The mechanism can authorize steps that limit market access or procurement opportunities for a counterpart seen as applying economic pressure.

With U.S. markets closed on Monday for the Martin Luther King Jr. Day holiday, activity in digital assets came largely during Asian trading hours, raising the possibility that a broader reaction could arrive when Wall Street reopens on Tuesday. The selloff also reinforced a recent pattern in which Bitcoin has not tracked gold during periods of heightened macro uncertainty.

Four Potential Crypto Market Movers This Week

Trade policy headlines remain the main variable as officials on both sides weigh next steps. Any confirmation of countermeasures, negotiations, or enforcement timelines could add to price swings across risk assets, including cryptocurrencies.

Macroeconomic releases in the United States are also closely watched. On Thursday, third-quarter GDP data is due alongside November’s delayed Personal Consumption Expenditures (PCE) inflation report. Policymakers are expected to focus on the inflation gauge after last week’s consumer price index showed cooling price growth.

The inflation update arrives ahead of next week’s Federal Reserve meeting, where officials have been split on whether to continue lowering interest rates. 

In Asia, monetary policy decisions could shape risk appetite. China is set to announce an interest-rate decision on Tuesday, while Japan’s central bank’s decision is scheduled for Friday, events that can influence currency movements and broader market positioning.

Corporate and policy gatherings add another layer for markets. Around 10% of S&P 500 companies are expected to report earnings this week, and the World Economic Forum begins in Davos, Switzerland, offering a venue where policymakers and business leaders may comment on growth, trade, and financial conditions.

In crypto trading, Bitcoin price fell roughly $3,500 within hours after consolidating around $95,000 over the weekend, reaching a weekly low near $92,280 before attempting to stabilize. 

Ethereum price dropped close to 3% but held above $3,200 during the same window. Altcoins generally recorded larger declines, with XRP, Solana, Dogecoin, and Cardano among all falling over 4% in the last 24 hours.

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