Crypto majors crumbled in early Monday session as financial markets reacted to President Trump’s decision to impose hefty tariffs on its key trade partners. While the risk-off mood pushed the digital assets to multi-month lows, savvy investors saw an opportunity to ‘buy the dip’. Subsequently, the likes of Ripple and Bitcoin have recorded impressive rebounds with the latter getting back above the psychologically crucial zone of $100,000.

Meanwhile, crypto projects in innovative subsectors are reaping big from the positive market sentiment and appetite for revolutionary projects. Dogizen, a new kid on the block in GameFi is set for explosive success asit leverages on Telegram’s wide reach and the expected pro-crypto environment. 

With less than a week left before it hits the open market, DOGIZ tokens are on high demand. Crypto enthusiasts acknowledge that its current price may be the lowest the project ever reaches on its path to explosive growth.   

Ripple price impressive rebound as investors buy the dip

Earlier on Monday, Ripple price extended its losses from the previous session; plunging below the ascending trendline connecting several of its lows since mid November 2024. It has dropped to a two-month low at $1.7610 before reversing some of those losses to trade at $2.6902 as at the time of writing.

Similar to most other cryptocurrencies, ripple price was reacting to President Trump’s decision to impose 25% tarriffs on imports from its key trading partners; Canada and Mexico. He has also signed an order imposing a 10% duty on goods from China as from 4th February.   

Following the rebound, the altcoin has gone back to trading above the medium-term 50-day EMA even as it remains below the short-term 20-day EMA. At its current level, it will likely find support along the 50-day EMA at $2.6255 as the bulls gather enough momentum to break the resistance along the 20-day EMA at $2.9000. Notably, this thesis will hold for a long as ripple price remains above the crucial zone of $2.5000. 

Dogizen enters the home stretch as a broad playing field awaits 

Dogizen is on its home stretch with the presale slated to end on Friday, 7th February. In a span of 4 months, the project has already raised $3.86 million.

With this trend, it will likely surpass its target as more savvy investors rush to amass some Dogiz tokens in time. With its apt timing and immense growth potential, its current price of $0.000085 may be the lowest it will ever get to. 

As a small-cap cryptocurrency, it has a wider room for growth and is set to secure its early adopters hefty profits upon hitting the open market. 

Besides, its listing comes at a time when cryptocurrencies are expected to benefit from President Trump’s policies. In fact, less than a week after his inauguration, he ordered for the establishment of a task force mandated to propose regulations on digital assets and consider the creation of the country’s crypto stockpile. 

In addition to the pro-crypto environment, Dogizen is also set to benefit from its positioning in the Telegram gaming sunsector. To start with, Telegram has over 950 million monthly active users. Couple this with the anticipated crypto bull run in 2025 and expected explosion of the GameFi sector and Dogizen is bound to reach new heights. 

What’s more, the project has insured itself against the wave of dumps that has impacted its rivals in the past. Unlike tokens like Catizen and Hamster Kombat, Dogizen embraced a well-organized presale as opposed to airdrops. This strategy has beared the desired fruits with its holders comprising of long-term loyal investors. Learn more abouut how to buy Dogizen here.

Ethereum price nears oversold territory as crypto majors crumble

Earlier on Monday’s session, Ethereum price plunged to a 6-month low as the markets reacted to Trump’s decision on tariffs. It has since rebounded to $2,732.53 as at the time of writing. 

A look at its daily chart shows the altcoin approaching the oversold territory at an RSI of 32. Besides, the indicator is facing downwards, pointing to the continuation of the current selling pressure.

At its current level, it is hovering around the previously steady support zone of $2,750. Further rebounding will have the bulls eyeing the next target at $2,926.18. On the flip side, further elling pressure may have Ethereum price retest the support level at $2,581.58.

According to Claudia Sheinbaum and Donald Trump, tariffs between the US and Mexico are paused for one month. This has already triggered a rebound for the crypto market, particularly XRP.

However, Canadian Prime Minister Justin Trudeau is retaliating harshly to US tariff efforts. His country is much more entangled with crypto markets than Mexico, presenting a real wild card.

US and Mexico Reach Agreement

Proposed tariffs between the US and Mexico have been wreaking havoc in the crypto market. US tech stocks were already reeling from DeepSeek, but new tariffs against Mexico, Canada, and China have caused billions in crypto liquidations.

XRP, which rallied over 300% since Trump’s election victory, dropped by over 25% over the weekend after the US president indirectly imposed a global trade war. Ripple’s altcoin slumped to $2.01 on Monday morning, its lowest in over a month.

Nonetheless, Mexican President Claudia Sheinbaum has reached an agreement with Donald Trump to postpone the process.

“We had a good conversation with President Trump with great respect for our relationship and sovereignty; we reached a series of agreements. Our teams will begin working today on two fronts: security and trade. Tariffs will be paused for one month from now,” Sheinbaum claimed via social media.

Sheinbaum claimed that her government would direct the National Guard to police the drug trade in the US. Trump concurred, announcing the deal.

Now that these new tariffs have apparently been halted, the markets have started to recover. In particular, the value of Ripple’s XRP token jumped up 6%.

Overall, XRP has regained the majority of its losses from earlier today. In fact, most of the ‘made in USA‘ cryptocurrencies, such as Cardano, Chainlink, and Hedera, have recovered significantly following the agreement.

Going forward, it seems that these assets will be highly driven by the political decisions and economic policies of the US.

Politics and Macroeconomic Factors Continue to Influence the Crypto Market

This development validates the predictions that tariffs would present a buying opportunity in crypto. Mexico and the US are significant trading partners, and Trump’s bluster has turned into a mutually beneficial trade deal.

The markets are sighing in relief, but there’s still a fly in the ointment: a lack of progress with Canada.

Unlike his counterpart in Mexico, Canadian Prime Minister Justin Trudeau has proved unyielding about US tariffs. He denounced these actions in a major speech, and Canada is preparing to retaliate with a trade war offensive of its own.

Tariffs against China are also apparently intact, but the country’s response is far more muted.

Canada, compared to Mexico, is substantially more entangled with the US crypto market. BlackRock launched a Bitcoin ETF in Canada, and 40% of the country’s institutional investors hold crypto.

The markets have been rebounding from one set of tariffs, but Canadian defiance may play an outsized role in this industry.

Ultimately, however, this situation is far too chaotic to predict accurately. Sheinbaum fervently denounced US tariffs against Mexico yesterday but shocked the markets with a successful deal this morning.

Trump and Trudeau may reach their own reconciliation agreement, which could have any number of impacts on the crypto market. Regardless, it’s evident that we’re in a new era of chaotic price moves.

Crypto markets are closely monitoring key US economic data this week to assess the health of the nation’s economy. As February commences, critical labor market reports — closely watched by the Federal Reserve—are on the calendar.

Given the potential impact on portfolios, traders may adjust their strategies around these upcoming events.

ISM Manufacturing

The Institute of Supply Management (ISM) will release the January ISM Manufacturing data on Monday, February 2, marking the first business day of the month. This nationwide survey of purchasing managers at manufacturing firms is widely viewed as a critical gauge of the US economy’s health.

The previous ISM manufacturing index was 49.3, with a consensus forecast of 50.0 for January. Readings above 50 indicate expansion, with the positive data boosting investor confidence in the economy’s strength. This could lead to increased risk appetite in the market.

If the ISM manufacturing index falls below the consensus of 50.0, it would suggest a contraction in the manufacturing sector. This could lead to concerns about the economy’s overall health and potentially negatively impact investor sentiment.

As a result, Bitcoin and other risk assets may experience increased volatility and downward pressure as investors seek safer assets during economic uncertainty.

“If ISM Manufacturing PMI rises, US stocks and the dollar strengthen, while crypto may drop due to tighter monetary policy expectations. If it falls, stocks can weaken, IHSG may be pressured by global sentiment, and crypto can go up or down based on risk sentiment and liquidity,” a user on X commented.

Job Openings

On Tuesday, February 4, the US Bureau of Labor Statistics (BLS) will release the December Job Openings and Labor Turnover Survey (JOLTS). The publication will provide data about the change in the number of job openings in that month and the number of layoffs and quits.

The data provides valuable insights regarding the supply-demand dynamics in the labor market, a key factor affecting salaries and inflation. In hindsight, the JOLTs survey showed that openings rose in November to 8.1 million.

Now, the consensus is also 8.1 million in December. Suppose the JOLTS data for December shows that job openings have increased as per the consensus forecast of 8.1 million or remain stable at that level; in that case, it indicates a strong labor market with ample opportunities for job seekers.

This positive economic indicator could improve consumer confidence, increased spending, and economic growth. In such a scenario, Bitcoin and other risk assets may benefit as investors anticipate a stronger economy and potential inflationary pressures.

Of note is that the state of the labor market is a key factor for Fed officials when setting policy. Therefore, if the data shows unexpected weakness, it could prompt a more dovish stance from the Fed. This could lead to lower interest rates or other accommodative measures.

Conversely, strong labor market data could push the Fed towards a more hawkish stance, possibly resulting in tighter monetary policy.

ADP Employment

The ADP Employment Change, released by Automatic Data Processing Inc., measures changes in private-sector employment in the US. An increase in this indicator typically suggests stronger consumer spending and supports economic growth. As a result, a high reading is generally bullish, while a low reading is considered bearish.

Wednesday’s ADP Employment Change report is an early indicator ahead of Friday’s official jobs data. Following December’s modest figures of 122,000, analysts are closely monitoring for signs of a slowing labor market.

A weaker-than-expected report could lift markets on hopes of Federal Reserve easing. At the same time, a stronger-than-expected result might trigger short-term volatility as traders adjust expectations for rate cuts.

“With earnings from tech giants and key economic data like ADP employment and ISM reports, this week could be a major inflection point for both equities and macro trends. Expect high volatility,” a crypto analyst on X observed.

Initial Jobless Claims

On Thursday, February 6, the weekly jobless claims will also shed light on the health of the US labor market. The previous initial jobless claims data came in at 207,000 for the week ending January 25. The median forecast is 213,000 for last week.

Meanwhile, weekly unemployment claims have been falling steadily for several weeks after hitting their highest level in October of more than over. Nevertheless, US initial jobless claims declined, continuing the rise in jobless claims.

This points to an environment where employers try to retain their employees for as long as possible. However, employees who lose their jobs find it difficult to get a new job.

“Thursday’s release of Initial Jobless Claims will provide an early indication of the labor market’s health, particularly in response to any economic headwinds. This metric is critical for gauging short-term shifts in employment and consumer confidence. The day also spotlights a broad spectrum of stocks,” Markets Today indicated.

US Employment

The January employment report is due on Friday, February 7. It is expected to sum up US economic data on the labor market for the last month. Economists expect January’s employment report will show payrolls dropped to 175,000 after recording 256,000 in December.

The Friday data will come after core personal consumption expenditures (PCE) prices rose to 2.6% in December. This PCE inflation rate met expectations of the Dow Jones economic estimate, while the Fed’s target inflation goal remains 2%.

Ahead of these US economic data, BTC is trading at $93,895, a 6.31% drop since Monday’s session opened.