Crypto assets entered bear market territory this weekend, and more volatility could emerge this week.
New Fed Chairman Kevin Warsh is seen as hawkish and may not cut rates as quickly or as much as investors expected, given his stance on inflation.
“It’s all about the labor market and earnings this week,” said the Kobeissi Letter, which also noted that “earnings season is in full swing and macroeconomic uncertainty is high.”
Economic events February 2 to 6
Monday kicks off the week with January’s ISM Manufacturing PMI data report, which sheds light on the health of the U.S. manufacturing sector.
The big week for labor market data kicks off on Tuesday with the December JOLTS jobs data, followed by the Initial Jobless Claims report on Thursday and the January jobs report on Friday.
“We haven’t really gotten much clarity on the state of the labor market and inflation due to the government shutdown last year, so we think those will probably be more important than normal,” said Michael Reynolds, vice president of investment strategy at Glenmede. told Reuters.
Following the Fed’s meeting last Wednesday, markets are now praising the central bank to delay further rate cuts until June, although a surprise weakening in the labor market could impact these expectations, the report said.
Main events this week:
1. January ISM Manufacturing PMI data – Monday
2. December JOLTS Job Details – Tuesday
3. Alphabet, $GOOGLReports Earnings – Wednesday
4. First data on unemployment benefits – Thursday
5. Amazon, $AMZNReports Earnings – Thursday
6. January Jobs…
— The Kobeissi Letter (@KobeissiLetter) February 1, 2026
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Another big batch of corporate profits, including those from ‘Magnificent 7’ pair Alphabet and Amazon, will test stock markets this week after a disappointing report from Microsoft.
Crypto markets hit yearly lows
More than $250 billion left the spot cryptocurrency market over the weekend, dropping total capitalization to $2.67 trillion, the lowest level since April 2025.
All the gains of the past nine months have now been wiped out as markets enter bear market territory, and the four-year cycle pattern appears to remain intact.
Bitcoin fell to a nine-month low, briefly dipping below $76,000 during Monday morning’s trading session in Asia. The decline has caused the stock to fall 40% from its all-time high.
Ether prices are back at bear market lows, falling 14% to $2,250 this weekend, the lowest since May 2025.
The altcoins have been wiped out, with most now down 70% to 80% from their peaks as panic selling continues for another week.
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