Crypto Markets Tank 4% Amid Trump Tariffs, Key Economic Data Ahead

The cryptocurrency market opened the week deep in the red, with total market capitalization plunging 4% to $2.31 trillion and wiping out all gains from the weekend. The selloff was triggered by a confluence of macroeconomic and geopolitical headwinds. Former President Donald Trump’s imposition of a 15% global tariff, following a Supreme Court ruling that his previous tariffs exceeded his authority, introduced fresh uncertainty into financial markets. This was compounded by elevated tensions between the US and Iran, which the Kobeissi Letter noted had oil markets—and by extension, risk assets like crypto—on edge.

Bitcoin, the market bellwether, bore the brunt of the selling pressure. Its price tanked from approximately $67,600 to just below $65,000 within a couple of hours, a drop of over $3,000. At the time of reporting, it remained around the $65,000 level, now down more than 5% for the week and testing support at the bottom of its recent trading range. Ethereum saw similar losses, falling to $1,860, its lowest price since February 6. The altcoin sector bled even more deeply, with larger losses reported for assets like Solana (SOL), Cardano (ADA), and Chainlink (LINK).

Beyond the immediate tariff shock, traders are bracing for a series of high-impact economic releases that could further sway market sentiment. The data docket is squarely focused on the two pillars of the Federal Reserve’s monetary policy mandate: maximum employment and price stability. On Tuesday, February’s Consumer Confidence data will be released. This is a critical gauge of consumer sentiment and potential spending patterns; in January, sentiment fell to its lowest level since 2014, largely due to concerns about employment conditions.

The labor market spotlight continues on Thursday with the latest initial jobless claims figures, which provide a timely snapshot of layoff trends and economic pressure on workers. The week culminates on Friday with the release of the January Producer Price Index (PPI), a key measure of wholesale inflation. While this data is crucial for the Fed’s assessment of price pressures, analysis suggests it is unlikely to immediately shift the central bank from its current wait-and-see approach to interest rates. Nonetheless, any significant deviation from expectations could inject volatility into both traditional and crypto markets.

Adding another layer of potential market-moving events, tech giant Nvidia (NVDA) is scheduled to report its earnings on Wednesday. As a leader in artificial intelligence (AI) chip manufacturing, its results are seen as a bellwether for the entire AI sector. The Kobeissi Letter noted that the report “could also rattle the AI sector if demand for the firm’s chips appears to be waning,” though it considered this outcome unlikely. Given the interconnectedness of tech sentiment and speculative asset classes, a negative surprise from Nvidia could spill over into the already fragile crypto market.

For crypto assets specifically, the technical picture has weakened considerably. Bitcoin’s sharp decline has placed it at a critical support level, and its failure to hold could signal further downside. Ethereum’s drop to multi-week lows suggests broader weakness beyond Bitcoin. The underperformance of major altcoins like Solana and Cardano indicates a risk-off environment where investors are fleeing more speculative holdings. As markets digest Trump’s tariffs, monitor Middle East tensions, and await a barrage of economic data, cryptocurrency traders face a week where macro developments are likely to overshadow any isolated sector news.