3 things that could impact the crypto markets in the coming week

The United States government remains in shutdown, which has put a limit on the amount of economic data that will be released this week.

The ongoing U.S. government shutdown is hampering policymakers’ efforts to analyze economic data that could influence monetary policy.

Crypto markets and stocks plunged on Friday and over the weekend in response to Donald Trump’s latest tariff volley against China. President Trump has announced that he will impose an additional 100% tariff on goods from China starting November 1 or sooner, in addition to the 30% tariffs already in place.

The crypto market sell-off was more brutal due to the amount of leverage in the derivatives markets that was washed away. However, crypto assets are in recovery mode this Monday morning as investors look to the week ahead. According to the Kobeissi Letter, US stock futures opened sharply higher as investors reacted to the de-escalation between the US and China this weekend.

Economic events October 13 to 17

There will be another speech from Federal Reserve Chairman Jerome Powell on Tuesday, but with the current lack of economic data it is unlikely that there will be clear signals for future policy changes.

The New York Fed Manufacturing Index and the Philly Fed Manufacturing Index reports will be released on Wednesday and Thursday. These reports are monthly economic indicators derived from a survey of manufacturers in the respective states assessing overall business conditions.

New York and California are struggling economically, and if things worsen, “they could take the entire U.S. economy with them,” reported MarketWatch during the weekend.

Main events this week:

1. OPEC Monthly Report – Monday

2. Fed Chairman Powell speaks – Tuesday

3. NY Fed Manufacturing Index – Wednesday

4. Philly Fed Manufacturing Index – Thursday

5. NAHB housing market index – Thursday

6. ~10% of S&P 500 companies report profits

The data…

— The Kobeissi Letter (@KobeissiLetter) October 12, 2025

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Third-quarter earnings season officially kicks off this week, with major banks and financial institutions including JPMorgan, Citigroup, Wells Fargo, Goldman Sachs, BlackRock, Bank of America, Morgan Stanley and American Express all reporting revenue.

Crypto markets are recovering

Cryptocurrency market capitalization fell to $3.3 trillion on Saturday morning, the lowest level since early July. However, it had recovered and reclaimed $4 trillion during the Asian trading session on Monday morning, while Bitcoin, Ether and many altcoins recovered strongly from the weekend routine.

A build-up of short positions before Trump’s tariff announcement saw the longs liquidated in the largest leverage flush in crypto history. While this event was serious, these flashouts are now quite common in crypto markets due to the popularity of perpetual leverage swaps.

BTC retreated towards $116,000, while Ether was approaching $4,200 at the time of writing. Both assets were back in their range bound channels.