Crypto’s Rollercoaster Week: Tariffs, Shutdowns, and a Fed Decision!

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Markets, that fickle minx, will be digesting the latest round of tariff threats from the US President, a potential government shutdown, and geopolitical tensions, all while attempting to maintain their composure. A veritable circus of chaos, one might say.

Add to this the Federal Reserve’s meeting and rate decision, and more inflation data, and we’re in for a rollercoaster ride this week. “Buckle up for a huge week ahead,” said the Kobeissi Letter, which warned of “significant volatility this week”-a phrase that, in the world of finance, is as reassuring as a well-timed punchline.

Economic Events Jan. 26 to 30

The US President, ever the dramatic, threatened Canada with 100% tariffs over the weekend if the country dared to pursue a deal with China. However, Canadian Prime Minister Mark Carney, with his usual poise, assured the world that Canada has no intention of pursuing such a free trade deal, quelling some investor fears-though one suspects the real fear is that Canada might actually go through with the deal.

Meanwhile, the US government teeters on the brink of a partial shutdown, as Senate Democrats, ever the contrarians, vow to oppose a funding package. “Government funding expires at the end of the week, and Republicans are determined to not have another government shutdown,” sources told CNBC, a statement that sounds less like a plan and more like a desperate prayer.

“Buckle up for a huge week ahead:

1. Markets React to 100% Canada Tariff Threat – Tonight

2. Markets React to 75% Chance of Govt Shutdown – Tonight

3. January Consumer Confidence data – Tuesday

4. Fed Interest Rate Decision and Press Conference – Wednesday

5. Microsoft, Meta,…

– The Kobeissi Letter (@KobeissiLetter) January 25, 2026

Additionally, four of the “Magnificent 7” report quarterly earnings this week, with Microsoft, Meta, and Tesla on Wednesday, and Apple on Thursday. Stock futures were already falling on Monday, as if the markets had heard the ominous ticking of a clock.

Crypto Market Outlook

Crypto markets, that most capricious of creatures, were deep in the red during the Monday morning trading session in Asia. Total capitalization had dropped 1.8% on the day, a fall to $3 trillion that would make even the most stoic investor clutch their pearls.

Bitcoin led the losses, falling back to $86,000, its lowest level for five weeks, before a minor recovery to $87,700. The asset is currently teetering on key support levels, which, if broken, could result in a fully fledged bear market-a prospect as thrilling as a rainy day at the races.

Ether prices continued to weaken, with the asset falling below $2,800 briefly and not showing much of a recovery. The altcoins were a predictable bloodbath, their declines as inevitable as the sun setting on a particularly dreary afternoon.

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2026-01-26 09:03