CAUTION: Crypto Holders Must Be Careful This Week

The word of the day is Volatility. I know your portfolios are hurting. Most of you are now flat or down for 2025 so far even with Trump’s pro-crypto policies coming out of the White House. But volatility is what also leads to golden crosses and 10k candles, too. It’s just for now, we are experiencing it on the downside.

And more volatility might be on the way this week. Global macroeconomic events are driving the story right now. And there are some major token unlocks happening. But don’t worry! If you liked Bitcoin at 96k, you should like it even more at 82k. The same is true for ETH, SOL, and many of the bigger-name, higher-quality projects. Here’s what’s coming up this week and why we expect more volatility for crypto holders. Plus, what to do about it.

Macro Events

Macro-economic events are driving everything right now. That’s why every announcement of tariffs or potential trade war coming from the US is spooking the markets. The macro for crypto is still super strong. This is the most pro-crypto government in the US we’ve ever seen, and a Bitcoin reserve is here.

But crypto doesn’t operate in a vacuum. And what economies do, particularly places like the US or China, affect everything else. This week, some announcements will likely add more volatility to the market. Most of these are related to employment and inflation. So they could be a preview into how Trump’s policies are affecting the overall economy in the US.

First, on Tuesday, we have the JOLTS job openings report. This is like a net jobs number month to month. JOLTS stands for job openings and labor turnover survey. So it looks like the net addition or subtraction of jobs whether by quitting, firing, or layoffs. Then, Wednesday, also by the same Bureau of Labor Statistics that does the JOLTS report, is the CPI. This is the big one. Consumer Price Index, or inflation.

Now, they cut the most volatile things by price that people spend money on, like food and energy. But it’s still a good measure of how much inflation is leaking into the economy. And as a monthly measure we can see if things are getting better or worse. The expected forecast here is 3.3% annually, and most see inflation dropping back into the 2s. Truflation, a crypto project, thinks it will drop to 1.40%.

More About Macro Events

There is a theory that’s catching on with people that Trump is doing this to the economy on purpose to slow activity and bring down rates. He needs lower rates since the US has so much debt to refinance this year. We don’t know if that’s why he’s looking to put tariffs in against everyone, but it is a plausible explanation.

So, CPI is the big one. Thursday, we see 2 more big reports on Jobless Claims and PPI. Jobless claims are what they sound like. People filing for unemployment for the first time. This will show us how many layoffs are taking effect in the economy.

As to PPI, that’s the Producer Price Index. This measures how much costs are going up for producers of goods and services. The easiest way to think about this is to compare it to a restaurant. If food costs increase and it costs double to get a high-quality steak, then the restaurant’s costs go up, and the price of the steak on your plate goes up for you too. Sometimes, PPI rises before CPI does, and sometimes, it rises after. The expectation for “core” PPI (without food and energy) is 3.5%.

By the way, are you noticing how many crypto accounts, including the ones we are using here, are tracking these macro events? That’s no accident. Do you think the numbers from the US Government this week will be bullish for the market? Let us know in the comments below

Token Unlocks

Then, another piece to add to the volatility is token unlocks. Big names like Aptos, Sei, and Arbitrum have between $12 million and $40 million in unlocks coming in the next 6 days. The total is a little more than $142 million. This can create selling pressure in the projects or the entire market itself since there is not a ton of liquidity out there.

Eigenlayer, Ethena, Render, and Starknet have unlocks this week, too. Render’s is only $1.5 million. However, the market is reacting negatively to all news, so don’t be surprised if you see a drop in some of these too. But don’t worry. I know we say buy the dip here when things like this happen.

The important thing to remember is that if you just bought Bitcoin or Ethereum or Solana even just a week or two ago, then you just need to ask yourself one question. Has anything in the fundamentals changed about this project in the last week or two? Or is only the price different?

And if only the price is different, then just hold on as this volatility we are seeing and expecting to continue this week will be temporary. The cream will rise to the top again.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.