On Sunday, Bitcoin fell below the $88,000 mark as the cryptocurrency market experienced a downturn during low-volume weekend trading. This decline is part of a broader pullback that has affected the crypto landscape over the past week.
As per CoinGecko data, BTC was trading around $87,800 in U.S. afternoon hours, reflecting a decrease of approximately 2% within 24 hours. Ether dropped to nearly $2,880 while other cryptocurrencies like Solana, XRP, and Cardano recorded losses ranging from 3% to 5%. Overall sentiment remains fragile as most major tokens have seen significant declines over the past week.
This downturn resulted in liquidations totaling $224 million on bullish positions; this included about $68 million related to Bitcoin futures and around $45 million linked to Ether futures.
Market movements during weekends are often influenced more by adjustments in positioning rather than new information—especially following periods of increased volatility earlier in the week.
As traders prepare for the upcoming week, there is heightened vigilance regarding potential interventions concerning the Japanese yen. Prime Minister Sanae Takaichi recently cautioned against “abnormal” fluctuations in currency markets after an unexpected shift occurred late Friday.
The yen’s sudden rise has raised concerns among Asian traders even though officials have not confirmed any specific actions according to Bloomberg reports.
In addition to these developments abroad, political uncertainties within the U.S. contribute further instability. Senate Democratic leader Chuck Schumer announced that his party would obstruct a significant spending bill unless funding for Homeland Security is excluded—a move that heightens fears of a partial government shutdown.
While such political standoffs are not uncommon, they can tighten liquidity conditions temporarily and negatively impact sentiment across risk assets during times when positioning is already elevated.
This latest decline follows an episode where Bitcoin briefly dipped below $90,000 amid substantial liquidations and overarching macroeconomic uncertainty. Earlier this week saw over $1 billion wiped out from leveraged positions as traders sought to reduce their exposure following sharp fluctuations across various currencies and bond markets.
The focus now shifts toward what lies ahead this coming week with investors anticipating an earnings season packed with results from several major technology companies.
The Federal Reserve is expected to maintain current interest rates at its next meeting which will likely reinforce a cautious approach following last year’s cycle of easing monetary policy.