Bitcoin slips below $88,000 ahead of Fed week and Big Tech earnings

Bitcoin slipped below the $88,000 level on Sunday as crypto markets weakened in thin weekend trading, extending a pullback that has weighed on the crypto market over the past week.

BTC traded around $87,800 in U.S. afternoon hours, down roughly 2% over 24 hours, according to CoinGecko data. Ether fell toward $2,880, while solana, XRP and cardano each posted losses of between 3% and 5% on the day. Most major tokens remain down sharply on a seven-day basis, reflecting the fragile state of sentiment across the market.

The move caused $224 million in liquidations on bullish bets, led by $68 million on bitcoin-tracked futures and $45 million on ether-based futures.

Weekend moves are often driven less by fresh information and more by positioning adjustments, particularly after periods of heightened volatility earlier in the week.

Traders are entering the new week on heightened alert for possible intervention in the Japanese yen after Prime Minister Sanae Takaichi warned against “abnormal” market moves, comments that followed a sudden reversal in the yen late Friday.

The currency’s sharp rally raised caution across Asian trading desks, even as officials stopped short of confirming any action, per Bloomberg.

Elsewhere, political risk in the U.S. added to an already unsettled backdrop.

Senate Democratic leader Chuck Schumer said his party would block a major spending package unless funding for the Department of Homeland Security is removed, increasing the risk of a partial government shutdown.

While such standoffs are familiar, they can tighten near-term liquidity conditions and weigh on sentiment across risk assets, particularly during periods of elevated positioning.

The latest dip follows a stretch that saw bitcoin briefly lose the $90,000 handle amid heavy liquidations and broader macro uncertainty. More than $1 billion in leveraged positions were wiped out earlier in the week as traders reduced exposure following sharp moves across currencies and bond markets.

Attention now turns to the week ahead, with investors also looking ahead to a heavy earnings week that includes results from several megacap technology firms.

The Federal Reserve is widely expected to hold rates steady at its upcoming meeting, reinforcing a wait-and-see tone after last year’s easing cycle.