Crypto markets bled $115 billion in hours after fresh U.S.-EU trade tariffs, with Bitcoin diving below $92,000 and altcoins following suit.
At a Glance
- Crypto market cap plunged 3% to $3.21 trillion in early-Monday trading
- Bitcoin dropped $3,500 to a weekly low of $92,280
- EU leaders convened an emergency session to weigh counter-measures
- U.S. markets are closed Monday, delaying any TradFi reaction until Tuesday
- GDP and PCE inflation data due Thursday could add more turbulence
Why it matters: Investors already jittery from policy whiplash now face a data-packed week that could set the tone for Federal Reserve moves and crypto volatility.
Tariff Shockwaves Hit Digital Assets
Donald Trump’s weekend announcement of 10% tariffs on eight EU countries ignited swift retaliation talk in Brussels. French President Emmanuel Macron urged activating the bloc’s anti-coercion tool-dubbed the “trade bazooka”-that could restrict U.S. firms’ access to European markets.
Within hours of Asian markets opening, Bitcoin fell from the $95,000 zone to $92,280, a slide of nearly 3%. Ethereum mirrored the move but clung to the $3,200 level. Altcoins fared worse:
- XRP, Solana, Dogecoin and Cardano all logged heavy losses
- Monero defied the rout, leaping 10% to $615
Total crypto market value shrank to $3.21 trillion, down $115 billion from the prior session, according to News Of Los Angeles‘s market tracker.
Holiday-Delayed Response Looms
Traditional markets are shuttered Monday for Martin Luther King Jr. Day, leaving traders bracing for a delayed reaction when U.S. futures reopen Tuesday.
Analysts say the lull could amplify swings once equities join the fray. “Crypto often leads, but stocks can accelerate the move in either direction once they’re back online,” said one Singapore-based trader quoted by News Of Los Angeles.
Data Deluge This Week
Beyond trade headlines, investors confront a stacked economic calendar that could reshape Fed expectations:
| Day | Indicator | Market Impact |
|---|---|---|
| Monday | U.S. markets closed (MLK Day) | Limited |
| Tuesday | PBoC rate decision | Asia focus |
| Wednesday | December pending home sales | Housing cue |
| Thursday | Q3 2025 GDP (final) | Growth pulse |
| Thursday | November PCE inflation | Fed input |
| Friday | BoJ rate decision | Yen/carry trade |
Thursday’s GDP revision and November’s delayed PCE inflation print headline the docket. Last week’s CPI already showed cooling price pressures; a soft PCE could cement expectations for another Fed rate cut at next week’s FOMC meeting.
Central Bank Watch
Asia adds its own fireworks. China’s central bank is expected to hold rates Tuesday, while the Bank of Japan concludes its meeting Friday. Any surprise tweak to Tokyo’s ultra-loose stance risks rippling through currency and crypto markets given the size of yen-funded carry trades.
Roughly 10% of S&P 500 companies also report earnings, and the World Economic Forum in Davos kicks off, guaranteeing headline cross-currents all week.
Bitcoin Versus Gold Divergence
Bitcoin’s drop contrasted with modest gains in gold, extending a pattern where the two assets have moved inversely during macro shocks. The correlation shift underscores crypto’s continued sensitivity to risk-on/risk-off swings tied to geopolitical headlines.
Still, market depth has improved since prior selloffs, limiting the intraday cascade that once produced double-digit drops. “We’re not seeing the leveraged liquidations of old,” noted Ethan R. Coleman. “Exchanges report lower open interest, so moves are cleaner.”
Investor Takeaway
Trade-war angst has already erased over $100 billion from crypto valuations, and more volatility looks likely as GDP, inflation and central-bank decisions hit the wire. With U.S. stocks closed Monday, all eyes turn to Tuesday’s opening bell-and whether traditional markets amplify or absorb the crypto-led slide.
