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Cryptocurrency markets are likely to be affected by several major factors this week, most notably U.S. labor market data, in addition to the rapidly evolving political situation in Venezuela that could lead to market volatility early in the first week of the year.
The United States launched military operations in Venezuela over the weekend, arresting President Nicolás Maduro and his wife, and there were reports of explosions in and around the capital, Caracas.
U.S. President Donald Trump’s announcement that the United States would take over management of Venezuela’s oil industry has sent energy prices tumbling, while digital currency markets have so far continued to show a degree of resilience.
The “Kobesi Letter” report pointed out that given the rapid changes in macroeconomic pressures, volatility remains a basic feature of the market.
U.S. and European markets will begin to absorb the impact of the weekend events as they open between January 5 and 9.
On the other hand, Asian digital currency markets edged higher on Monday morning.
On Tuesday, ISM manufacturing index data for December, which measures the performance of U.S. manufacturing, is expected to be released.
However, the market’s main focus will remain on labor market data, as ADP private sector employment data for December and JOLTS job openings data for November will be released on Wednesday.
The importance of the data is that the Fed has cut interest rates three times in the past year due to declining labor market strength, making any new data relevant to expectations for future monetary policy.
Friday’s U.S. jobs report for December as well as consumer confidence data will continue to be released this week, which may increase the market’s sensitivity to any unexpected data.
Against this background, Reuters quoted Eric Kirby, chief investment officer of Polaris Investment Management, as saying that the decline in labor market strength has given the Federal Reserve more room to adjust the direction of interest rate cuts.
At the digital currency market level, the total market value rose by approximately 2% during the day, reaching approximately US$3.25 trillion, the highest level since December 10.
Bitcoin led gains in early Asian trading on Monday after breaking through $93,000 before falling slightly.
Ethereum also rose for several weeks, briefly touching $3,200 before falling to around $3,180 at the time of writing.
Tokens such as XRP, Dogecoin, Chainlink, Stellar, and Hyperliquid have also seen notable positive moves.
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