Crypto markets fell further over the weekend, entering bear market territory, and more volatility may be ahead. The sell-off accelerated after news of US President Trump’s nomination for Federal Reserve chair, Kevin Warsh, who is seen as hawkish and unlikely to cut interest rates as quickly or as much as investors had hoped due to his stance on inflation.
“This week is all about the labor market and earnings,” noted The Kobeissi Letter, highlighting that earnings season is underway while macroeconomic uncertainty remains elevated.
Key Economic Events Feb. 2–6
Monday brings the January ISM Manufacturing PMI report, providing insight into the health of the US manufacturing sector.
Labor market data will dominate the week, starting with December JOLTS Job Openings on Tuesday, Initial Jobless Claims on Thursday, and the January Jobs Report on Friday. Michael Reynolds of Glenmede pointed out that these reports are particularly important given last year’s government shutdown, which left gaps in the labor and inflation data. Markets are currently pricing in no further Fed rate cuts until June, but any unexpected weakness in the labor market could alter that outlook.
Corporate earnings will also influence markets this week, with major reports expected from Alphabet and Amazon, following a weaker-than-expected report from Microsoft.
Crypto Markets Hit Yearly Lows
Over $250 billion left the spot crypto market over the weekend, pushing total capitalization down to $2.67 trillion, the lowest since April 2025. All gains from the past nine months have been erased, and the four-year cycle pattern appears to remain intact.
Bitcoin briefly dipped below $76,000 in Monday’s Asian session, marking a nine-month low and a 40% drop from its all-time high. Ether also fell to $2,250, a 14% decline over the weekend and its lowest level since May 2025. Most altcoins have been hit hardest, now trading 70% to 80% below their peak as panic selling continues into the new week.
