The cryptocurrency market was shaken by a sharp sales wave on the first trading day of the week, giving back all the gains it made over the weekend, one by one. Donald Trump’s tariff moves and escalating geopolitical tensions in the Middle East caused Bitcoin to lose $3,000 in value within an hour, leaving investors vulnerable. Before critical data in the global economic calendar and Nvidia’s earnings report, the total value of cryptocurrencies dropped to 2.31 trillion dollars.
Cryptocurrencies Under Customs Duties and Geopolitical Pressure
United States President Donald Trump shocked the markets by announcing that he would impose a 15% global customs duty despite the Supreme Court’s decision on excess authority. The cryptocurrency market, which lost 4% in value as of Monday morning, is trying to price this harsh trading move from Washington. As Kobeissi Letter analysts emphasize, the tension between the USA and Iran keeping the oil markets on edge has become one of the main factors accelerating the flight from risky assets.
The price of Bitcoin dropped from $67,600 to $65,000 in a short time, losing more than 5% in value on a weekly basis. The largest cryptocurrency, which is currently trying to hold on to the lowest level of channel support, has become a victim of macroeconomic uncertainties. The situation is not much different on the Ethereum side; Declining to the level of $ 1,860, ETH has exhibited its lowest performance since the beginning of February, worrying its investors.
In the altcoin world, projects such as Solana, Cardano and Chainlink continue to suffer deeper wounds than Bitcoin and continue to lose blood. As market participants try to make sense of whether this sharp decline is a correction or a harbinger of a deeper bear market, all eyes are on the next stop of the global trade wars. This turmoil in the political arena seriously tests the claim of cryptocurrencies as a “safe haven”, especially this week.
Macroeconomic Calendar and Nvidia Bend
Customs duties are not the only factor that will determine the fate of cryptocurrencies; Economic data to be announced throughout the week will shed light on the Fed’s monetary policy. Consumer Confidence data to be published on Tuesday will show whether optimism, which hit the lowest level since 2014 in January, has recovered. Cracks in the employment market and consumers’ appetite for spending play a direct determining role for liquidity-sensitive assets such as Bitcoin.
Unemployment benefit applications to be announced on Thursday and the Producer Price Index (PPI) on Friday will reveal the latest situation in the kitchen of inflation. Although it may seem difficult for the increase in wholesale prices to dissuade the Fed from its “wait and see” strategy, data deviation from expectations may increase volatility. On the other hand, the earnings report to be announced by Nvidia, the giant name of the technology world, on Wednesday has the potential to have a great impact on artificial intelligence-focused cryptocurrency projects.
Any sign that demand for Nvidia’s chips is waning could push the cryptocurrency market, which is highly correlated with technology stocks, even lower. Although experts see a decrease in demand as a low possibility, all kinds of data sets have turned into a minefield in this period when the market is extremely sensitive. While investors follow the macro data, they also observe whether the support levels on the cryptocurrency charts will work.
