4 Factors That May Continue to Dissolve Crypto Markets in the Next Week

Crypto markets have already started the week with a high volume of volatility following the escalation of trade wars between the United States and the European Union.

Markets are reacting this morning to Europe’s retaliation to Donald Trump’s announcement of trade tariffs over the weekend. Crypto markets have added 3% in the past few hours, spending $115 billion in the fall to $3.21 trillion, mainly led by Bitcoin, which falls below $92,000 on other exchanges.

Trump’s announcement of a 10% tariff on eight European countries prompted an emergency meeting of EU leaders on Sunday. French President Emmanuel Macron reportedly asked the bloc to open its so-called anti-coercion tool, commonly known as the “trade bazooka,” which could limit America’s access to European markets.

Adding to the volatility this week are economic reports on GDP and inflation, which could further disrupt markets.

Economic Events Jan. 19 to 23

The US TradFi markets are closed on Monday for Martin Luther King Jr Day, a national holiday, so there may be a delayed reaction on Tuesday as the crypto markets are already closed.

Hard data will be released on Thursday with third quarter GDP reports and delayed November Personal Consumption Expenditures (PCE) inflation data.

Policymakers will be closely watching inflation readings this week, following last week’s CPI report showing inflation continued to cool. The report comes ahead of next week’s Federal Reserve meeting where economists are divided on whether to continue lowering interest rates.

Important Events this week:

1. Stock Market Futures React to Trump’s 10% EU Tariffs – Tonight

2. US Markets Closed, MLK Day – Monday

3. December Home Sales Data Pending – Wednesday

4. US GDP Q3 2025 data – Thursday

5. PCE Inflation data for November – Thursday

6. January S&P Global…

— The Kobeissi Letter (@KobeissiLetter) January 18, 2026

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In Asia, the focus will be on interest rate decisions from central banks in China on Tuesday and Japan on Friday.

About 10% of S&P 500 companies report earnings this week, and the World Economic Forum in Davos, Switzerland, also starts this week, so buckle up!

Crypto Market Plunges

Bitcoin has moved in the opposite direction of gold again as the commodity shed more than $3,500 in less than an hour in early trading in Asia on Monday.

After a weekend consolidation around $95,000, BTC fell nearly 3% in the fall to $92,280 weekly and has failed to recover at the time of writing. Ethereum took the same amount, but managed to hold above the $3,200 price level.

Big losses were seen in the altcoin markets as usual, with big slides for XRP, Solana, Dogecoin, and Cardano. Only Monero used this trend with a profit of 10% per day to reach $615.