The Olympics Kick Off While Markets Lose Their Balance

For the week ended 2/7/2026.

Okay, let’s start with the unemployment rate released last week – oh wait, that didn’t happen. With the latest rumor mill suggesting a Wednesday release, we can once again tip our hats to the lingering side effects of a government shutdown. Consistency is overrated anyway.

Moving on to news that actually occurred, the headline act of the week was the continued demolition of Bitcoin and its crypto cousins. It was so ugly that the data provider for MMM didn’t even get the numbers out in time for the charts below. That takes talent. But fear not, I have the carnage covered: Bitcoin dropped 16% on the week and is now down 45% from its October high. Ether said, “hold my beer,” falling 24% on the week and a breathtaking 59% from its peak.

Crypto devotees, take heart – we’re still not back to full historical pain. For those feeling nostalgic, Bitcoin fell roughly 80% during the 2018 crash. As I’ve said before (and echoed by voices with far more clout than mine), crypto remains a playground for black-market activity and nefarious actors. Tread carefully. Or don’t – but at least know what game you’re playing.

Back in the world of real investments, the Dow Jones Industrial Average briefly flirted with 50,000 last week. Cue the confetti. Meanwhile, broader – and far more relevant – indices struggled as AI-inspired volatility crept back into the picture. Fears that the bubble may be getting pricked led to modest losses across markets. Much of this stemmed from new add-ons to Anthropic’s Claude product, which sparked a selloff stretching from software and legal-services firms all the way up to the AI titans themselves.

As we know, the market’s gravity-defying rally has pushed AI valuations into previously unfathomable territory, minting a fresh crop of millionaires whose spending has helped keep the economy humming. A new generation of investors continues to blur the line between investing and outright gambling. But hey – what could possibly go wrong?

Looking ahead, this week should bring the long-awaited unemployment rate and nonfarm payrolls on Wednesday, followed by CPI on Friday. Expectations call for steady readings, with perhaps a slight cooling. Now if only forecasts had a better batting average.

And finally, the Winter Olympics are officially underway. Take a moment to tune out the endless geopolitical noise and enjoy the spectacle of elite international competition. My lone gripe? Enough with the hired-gun gamesmanship – athletes swapping national allegiances for convenience or compensation. Represent who you represent. That said…go USA!

Good morning, and enjoy the week.

Interesting data point of the week.

Source: Visual Capitalist

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