Will the Market Recover or Crash More?

The crypto market has dropped by 2.66% in 24 hours, totaling $2.58 trillion in value. A $704 million leveraged position liquidation triggered intense selling pressure. 

The Bitcoin price fell under $80,000, and Ethereum is traded under $2,300. The leading altcoins, such as XRP, ADA, BNB, SOL, and DOGE, have also registered significant losses.

This could still be considered as one of the largest crashes in the crypto market this year. Analysts observe that it is correlated with gold at 63%, indicating that macro-economic laws are at work. 

With the course of the week, investors are keen on the upcoming crypto events with the hope that the market will either recover or keep declining.

Crypto Market Events to Watch This Week

This week, financial markets brace for a flurry of crucial economic data and policy developments that could stir significant volatility. Investors and analysts are continuously keeping an eye on the calendar, with events including U.S. economic reports and other key announcements by the Federal Reserve.

Key U.S. Economic Releases Ahead

Monday kicks off with the release of the ISM Manufacturing Purchasing Managers Index (PMI) for January. Analysts expect a slight rise, with an estimated figure of 48.3, compared to December, which was 47.9. This fact is essential to the evaluation of the health of U.S. manufacturing.

The Federal Open Market Committee (FOMC) announced that it had decided to hold the federal funds rate at 3.50%-3.75% on Wednesday. The following FOMC session will be held on March 17-18, 2026.

The biggest data of the week will be expected on Friday: the U.S. Employment Situation Summary of the Bureau of Labor Statistics. The January jobs report will be released at 8:30 a.m. Eastern Time, and the number of new job positions is predicted to be 55,000, with the unemployment rate expected to remain at 4.4%.

Liquidity Injections and Fed Chair Transition

On Tuesday, the Federal Reserve quietly injected $6.9 billion into the financial system through Treasury bill purchases. This is a larger liquidity operation, which will be followed by further injections till the start of February. The central bank is working in a bid to stabilize the financial conditions after continuous worries of funding stress.

In the meantime, Kevin Warsh has been appointed by President Donald Trump to become the new Chair of the Federal Reserve, replacing Jerome Powell. 

His future leadership is already creating controversy on the future course of Fed, in terms of balance sheet manipulation and overall monetary policy. It is anticipated that Warsh will take over in May 2026, subject to confirmation.

Global and Regional Highlights

Thursday, the markets will be assessing the recent revision of the Fed balance sheet. Saturday closes the week when China publishes its most recent money reserve numbers, another major parameter of the liquidity situation in the world. All these developments in the short span of one week have markets on the alert, and severe price fluctuations might be experienced.