Crypto markets are retreating amid heightened economic uncertainty linked to global events. A volatile week lies ahead with critical US economic data releases, including PMI surveys and labor market reports. Analysts warn that rising oil prices and inflationary pressures could further dampen sentiment for high-risk assets like cryptocurrencies.
Crypto markets fell as fear and uncertainty returned amid escalating geopolitical tensions. U.S. stock market futures also declined following President Trump’s stern warning to Iran regarding the Strait of Hormuz. This week’s economic calendar includes key data that will gauge the conflict’s impact. “This is significant because it’s one of the first economic indicators we’ll get that cover the period since the conflict began,” economists from Deutsche Bank stated in a note.
March’s purchasing managers’ index data will be released on Wednesday. Thursday brings initial jobless claims, a key indicator for Federal Reserve policy decisions. “Hence why we still feel the Fed is more likely to cut than hike rates,” wrote ING economist James Knightley. The week concludes with consumer sentiment and inflation expectations reports on Friday.
Analysts highlighted the direct economic impact of rising fuel costs. Ryan Sweet, chief global economist at Oxford Economics, explained the consumer burden. “To kind of put it into context, every penny increase in gasoline prices reduces consumer spending by one and a half billion dollars over the course of a year,” he told CBS News. Such inflationary pressures are generally bearish for speculative assets.
Total cryptocurrency market capitalization dropped 1.3% to $2.42 trillion during Monday trading in Asia. Bitcoin fell back below $68,000 before a minor recovery, while Ether dropped to around $2,033. Major altcoins like XRP, Cardano, Hyperliquid, and Stellar saw larger losses. Markets are reacting to the combination of economic data and geopolitical developments.
