While the cryptocurrency market entered the week with a sharp shake, the European Union’s response to the new customs tariffs announced by US President Donald Trump rapidly dragged down the global risk appetite. In the first hours of Asian trading, the total value of the cryptocurrency market fell by 3 percent in a few hours to $ 3.21 trillion, and the locomotive of the decline was Bitcoin. Bitcoin, which stabilized around $95,000 over the weekend, saw below $92,000 on some exchanges, indicating that volatility will remain high throughout the week. The macroeconomic data calendar and central bank decisions that came in the same time period made the pricing in cryptocurrencies even more sensitive.
Europe–US Tension and Macro Calendar Pressure
At the center of the markets’ initial reaction was Trump’s announcement that he was imposing 10 percent tariffs on eight countries in Europe. Following the statement, EU leaders held an emergency meeting on Sunday and evaluated the scope of counter-steps. French President Emmanuel Macron called for the Union to activate the mechanism known as the “anti-coercion instrument” and publicly referred to as the “trade bazooka”. For those who don’t know, this tool includes sanctions that could limit US access to European markets.
On the other hand, another main topic that may affect the pricing of Bitcoin and altcoins for the rest of the week will be macro data. Traditional markets in the US closed on Monday with Martin Luther King Jr. While it remains closed due to the day, the effects of the sales wave on the cryptocurrency side are expected to be reflected with a delay on Tuesday. The third quarter GDP data to be announced on Thursday and the deferred Personal Consumption Expenditures (PCE) inflation data for November are seen as critical in terms of expectations regarding the interest rate path.
On the Asian front, the interest rate decisions of China’s central banks on Tuesday and Japan’s central banks on Friday will be watched. Signals regarding global monetary policy are expected to increase volatility, especially in the cryptocurrency market, where leveraged positions are concentrated.
Harsh Movements in Cryptocurrency Prices
During the sales at the beginning of the week, Bitcoin once again moved in the opposite direction to gold, which is seen as a safe haven. Bitcoin, which fell to weekly lows in Asian transactions with a loss of more than $ 3,500 in a few hours, could not recover at the time of writing. While Ethereum fell on a similar scale, it managed to stay above the $3,200 threshold.
Losses are more evident on the altcoin front. While XRP, Solana, Dogecoin and Cardano experienced sharp losses in value during the day, Monero became a rare positive divergent altcoin with a 10 percent increase and reached the level of $ 615. Market participants are also closely following the balance sheets to be announced by approximately 10 percent of S&P 500 companies within the week and the World Economic Forum meetings that will start in Switzerland.
When geopolitical headlines shaped around tariffs, inflation data and central bank messages are evaluated together in the coming days, the search for direction in the cryptocurrency market is expected to fluctuate in the short term.
