Weakened Dollar and Crypto Market to be Tested Following a Lost Grip

• The US Dollar has weakened against major currencies.
• The Crypto market has lost 2.76% in market cap.
• Testing factors are upcoming employment and inflation data, among others.

The US Dollar (USD) is feeling the pressure against some of the major currencies, like Japanese Yen (JPY) and Australian Dollar (AUD). This comes ahead of employment data, which is scheduled to be rolled out on Wednesday.

Meanwhile, the crypto market is seeing major dips across every segment – AI, meme, etc. It remains to be seen if the US Dollar and the crypto market stand the test.

US Dollar Weakens

The US Dollar has lost 0.75% against JPY and 0.54% against AUD. USD/JPY stands at 153.4810 while USD/AUD is at 1.4058. Notably, JPY was speculated to go the other way ahead; however, elections over the weekend defied most of it to strengthen Prime Minister Sanae Takaichi’s hold over her policies.

It was earlier reported that the Chinese Yuan gained strength against the US Dollar. The US currency is also down against the Swiss franc by 0.25% at 0.7659. The New Zealand Dollar gained 0.2% against $0.6054. The US Dollar Index currently stands at 96.626, down from 97.846 as reported last week.

Crypto Market Down

The crypto market, in its entirety, is down by 2.76% in terms of market cap. The value is $2.28 trillion on paper with a single-digit FGI of 9 points. All top-10 tokens, excluding stablecoins, have lost at least 2% of their respective values. BNB has lost the most. It has shed 5.49% over the last 24 hours, and is now trading at $592.29.

The situation is the same across the meme coin segment, with TRUMP and BONK recording the highest losses among the top meme coins. TRUMP is down by 4.75% while BONK has lost 3.64% of its value.

TAO, an AI token, is possibly leading the charge as it has plunged by 6.34% during the same time line. It is now exchanging hands at $147.09.

Testing Factors

Factors that would possibly test the US Dollar and the crypto market are upcoming US Jan 2026 employment and inflation data, scheduled to be rolled out on Wednesday and Friday, respectively.

According to a report by Reuters, markets are pricing an easing of 60 bps by the end of this year, that is 2026. What’s still on the toe is retail sales along with labor costs, as the former slowed in December 2025 and the latter in the fourth quarter.

Highlighted Crypto News Today:

Into The Cryptoverse Founder Takes a Dig at Meme Coins as Segment Shows Decline