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The crypto market is off to a rough start this week, with almost all major projects showing red numbers and suffering from the ongoing declines. At the time of writing, Bitcoin (BTC) has dropped 6.2% in the past 24 hours, while Ethereum (ETH) is down even more, losing 8.2% in the same period. Investors are now eagerly awaiting crucial economic data from the U.S. that will be released throughout the week.
Markets React to Uncertainty
The current downturn follows a brief recovery last week, which was mainly driven by positive reactions to Donald Trump’s inauguration. Bitcoin even hit a new all-time high (ATH) on January 20. However, the recent reversal appears to be linked to the upcoming release of key economic reports, which are expected to have a significant impact on financial markets, including crypto. The uncertainty surrounding these reports is weighing heavily on the market and contributing to the current price declines.
A Week Full of Critical Economic Reports
This week is shaping up to be one of the most important of the year for financial markets, with several major releases and decisions on the horizon. Here’s what to watch:
- Tuesday: The release of the Consumer Confidence Index, providing insight into U.S. consumer sentiment.
- Wednesday: The first Federal Reserve (Fed) meeting of 2025, which could offer clues about future monetary policy.
- Thursday: The preliminary Q4 GDP report, with expectations that economic growth will slow from 3.1% to 2.7%. A higher-than-expected figure could reduce the likelihood of interest rate cuts.
- Friday: The release of the Core PCE Inflation Report, a key metric for the Federal Reserve. This report could be crucial in shaping future interest rate decisions.
Silicon Valley in Turmoil
Beyond economic uncertainty, a major shake-up in the tech world is also causing concern. Chinese company DeepSeek has launched an AI model that reportedly outperforms OpenAI and Google’s systems at just a fraction of the cost. This game-changing development has triggered significant stock declines among tech giants, which is now spilling over into the crypto market.
Conclusion
The combination of economic uncertainty and disruptive technological advancements—such as DeepSeek’s AI breakthrough—is making this a challenging week for the crypto market. Investors are staying on high alert, as the upcoming days could determine the market’s direction in the near future.
- If you want to stay informed about economic events, you can find a clear and concise economic calendar on Crytheory! 📊📅
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