Bitcoin and major cryptocurrencies declined on Sunday as traders reduced exposure ahead of the Federal Reserve’s upcoming rate decision and a packed earnings week for U.S. technology heavyweights.
Bitcoin slipped below $88,000 during thin weekend trading, extending a broader pullback that has weighed on digital assets over the past week. The largest cryptocurrency was trading near $87,800 in U.S. afternoon hours, down about 2% over the past 24 hours, according to CoinDesk data.
Ether fell toward $2,880, while solana, XRP and cardano each posted daily losses of between 3% and 5%. Most major tokens remain sharply lower on a weekly basis, highlighting cautious sentiment and fragile positioning across the crypto market.
The decline triggered $224 million in liquidations of bullish positions over the past 24 hours. Bitcoin futures accounted for roughly $68 million of those losses, while ether-linked contracts saw about $45 million in liquidations, CoinGlass data showed.
Weekend price action is often driven by positioning rather than new catalysts, particularly after volatile trading earlier in the week.
Macro risks build
Traders are entering the new week on alert for renewed volatility in the Japanese yen after Prime Minister Sanae Takaichi warned against “abnormal” currency moves, comments that followed a sharp reversal in the yen late Friday.
The sudden rally in the currency raised caution across Asian markets, even as officials stopped short of confirming any imminent intervention, according to Bloomberg.
Shutdown risk in focus
U.S. political uncertainty added to the uneasy backdrop. Senate Democratic leader Chuck Schumer said Democrats would block a major spending bill unless funding for the Department of Homeland Security is removed, increasing the risk of a partial government shutdown.
While budget standoffs are common, they can tighten near-term liquidity and pressure risk assets, particularly when positioning is elevated. Historically, bitcoin has often faced selling pressure ahead of potential shutdowns, followed by rebounds once uncertainty clears.
Polymarket traders are currently assigning a 76% probability to a U.S. government shutdown by the end of the month.
Earnings and the Fed ahead
Attention now turns to a busy week that includes earnings from several megacap technology firms, including Microsoft, Meta Platforms, Tesla and Apple — core members of the so-called “Magnificent Seven.”
Investors will be watching closely for signals on artificial intelligence-related spending and demand, with management commentary likely to influence broader risk sentiment. Bitcoin, which has increasingly traded in line with equities, may move alongside these results.
The Federal Reserve’s first rate decision of the year will also be closely watched. While policymakers are expected to hold rates steady, traders will parse Chair Jerome Powell’s post-
