Crypto markets have tanked to their lowest levels in 2025 as US President Donald Trump escalated his trade war over the weekend with hefty tariffs on Canada, Mexico, and China.

Last week, Federal Reserve chair Jerome Powell said that policymakers didn’t need “to be in a hurry” to cut rates while maintaining them at 4.25% to 4.5%.

He also said it would be helpful if there were a “greater regulatory apparatus” around crypto while advising banks not to debank crypto customers.

This week will see the release of key labor market data, which could settle sentiment following the massive Monday sell-off.

Economic Events Feb. 3 to 7

Monday will see the release of January’s ISM Manufacturing PMI (Purchasing Manager’s Index) report, which shows business conditions in the US manufacturing sector. This data is considered a reliable leading indicator for assessing the state of the economy.

Tuesday will have the JOLTS Job Openings report followed by nonfarm employment data on Wednesday. Meanwhile, Friday’s jobs report presents the number of new jobs created during the previous month and the percentage of people actively seeking employment in the last month.

January’s ISM Services PMI report is due on Wednesday, providing an outlook on business conditions in the services sector, which contributes over 70% of the US GDP.

Key Events This Week:

1. OPECs First Meeting of 2025 Monday

2. ISM Manufacturing PMI data Monday

3. JOLTS Job Openings data Tuesday

4. ADP Nonfarm Employment data Wednesday

5. January Jobs Report Friday

6. 20% of SP 500 companies report earnings

This week is…

There are also some big revenue reports due this week, with 20% of SP 500 companies reporting earnings, including Alphabet (Google), PayPal, AMD, Amazon, and MicroStrategy.

Crypto Markets Bleed

Total crypto market capitalization has tanked a whopping 12% over the past 24 hours, with more than $450 billion exiting the space. The massive selloff and largest dump since mid-December has sent markets spiraling back to mid-November levels.

Bitcoin crashed to $91,500 during the Monday morning Asian trading session, its lowest level for three weeks. However, the altcoins were getting absolutely obliterated, with the entire top twenty seeing double-digit losses as the selloff accelerated.

Ethereum had wiped out three months of gains, falling to pre-US election levels below $2,500, while XRP fell a massive 27% back to $2 in a matter of hours.

Meanwhile, Dogecoin, Cardano, Chainlink, Stellar, Avalanche, Sui, Toncoin, and many others were bleeding out by more than 20% on the day.