Economic Events and Crypto Markets

Market Overview

Digital assets went on a highly volatile ride on Monday morning, with BTC dumping from $106,000 to under $100,000 only to bounce off and register a new all-time high hours later at over $109,000.

All eyes will be on Donald Trump’s inauguration on January 20 while traditional markets in the United States remain closed for Martin Luther King Jr. Day.

Better-than-expected Core CPI data eased inflation fears last week, and investors were encouraged, which was reflected in market performance; however, that all appears to be unraveling as we begin another week. Nevertheless, the crypto market has managed to recover from recent losses and is up to new peaks.

Economic Events January 20 to 24

President-elect Donald Trump will be sworn into office on Monday, but markets may have already factored this in. However, the signing of executive orders may come quickly, inducing further market volatility.

Over the weekend, Trump launched his own memecoin (TRUMP), which surged to over $70 billion in fully diluted valuation in a matter of hours before dumping 50% in a massive market crash.

It will be a light week in terms of economic data, beginning with initial jobless claims reports released on Thursday.

This will be followed by January’s S&P Global Manufacturing PMI and Services PMI preliminary readings on Friday. The purchasing manager’s index data is a leading economic indicator used to gain insight into changing conditions in the wider economy.

On Friday, existing home sales data, January’s Michigan Consumer Sentiment Index, and inflation expectations will also be released. The latter reports portray the results of a monthly survey of consumer confidence levels and views of long-term inflation, which impacts spending.

Key Events This Week

Key Events This Week:

1. MLK Day, US Markets Closed – Monday

2. Inauguration of President Trump – Monday

3. Initial Jobless Claims data – Thursday

4. S&P Global Manufacturing/Services PMI data – Friday

5. December Existing Home Sales data – Friday

6. ~10% of S&P 500…

— The Kobeissi Letter (@KobeissiLetter) January 19, 2025

Additionally, Thursday’s European Central Bank meeting may provide signals about potential rate cuts in 2025, which could influence global markets.

There are also some notable earnings reports released this week including Netflix, Charles Schwab, and American Express.

Crypto Markets Going Crazy

Crypto markets started the week in the red as over $200 billion left the space, dumping total capitalization by over 6% to $3.58 trillion.

Bitcoin fell hard, losing a similar percentage in a fall back into five figures again, dropping to $99,700. However, it all changed in the following hours as the cryptocurrency resumed its bull run and shot up to a fresh all-time high of over $109,000.

The altcoins also faced enhanced volatility but have started to chart impressive gains over the past hour or so.