Four factors that could exacerbate crypto market turmoil this week?

Cryptocurrency markets entered the new week under intense pressure after Europe reacted swiftly to U.S. President Trump’s announcement of tariffs on European countries.

Within hours, the cryptocurrency market capitalization fell by approximately $115 billion to approximately $3.21 trillion, with the price of Bitcoin falling below $92,000 on some platforms.

The first factor worthy of attention is the escalation of trade between the United States and the European Union. Trump’s 10% tariff increase on eight European countries prompted EU leaders to convene an emergency meeting, and France called for the use of so-called trade cannon in response, which may increase market tensions.

The second factor is expected economic data this week, led by Thursday’s expected GDP report and inflation data (PCE), which may strongly influence monetary policy expectations ahead of next week’s Fed meeting.

Third, the market is awaiting interest rate decisions in Asia, with the Bank of China expected to make a decision on Tuesday and the Bank of Japan on Friday, which could increase volatility in global markets.

The fourth factor is related to company performance and global events. About 10% of S&P 500 companies announced their results this week, which coincides with the opening of the World Economic Forum in Davos, which increases the market’s sensitivity to news and statements.

Given these factors, Bitcoin’s price fell by more than $3,500 in a matter of hours, while Ethereum fell by nearly $3,200. Alternative currencies fell more sharply, with Monero being the exception with significant daily gains.

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