BTC Price Slips Under $88K: Fed Week, Tech Earnings, and Shutdown Risks Ahead

Bitcoin has dipped below the mark as markets cool off during quiet weekend trading. This pullback adds to a tough week for crypto, with traders eyeing big events ahead like the Federal Reserve meeting and major tech company earnings.

Current Bitcoin Price Action and Market Losses

Right now, Bitcoin (BTC) sits around $87,800, down about 2% in the last 24 hours. Data shows Ether dropping to near $2,880, while Solana, XRP, and Cardano each lost 3% to 5%. Over the past seven days, most top tokens are down sharply, showing weak market mood.

This slide triggered over $224 million in liquidations of long positions. Bitcoin futures saw $68 million wiped out, and Ether futures lost $45 million. Weekend trades often come from position tweaks rather than big news, especially after a volatile week.

Why Markets Are on Edge: Yen Intervention Fears

Traders watch Japan closely after Prime Minister Sanae Takaichi called out “abnormal” yen moves. The yen rallied hard late Friday, sparking talk of possible government steps. Asian desks stay cautious, though no action is confirmed yet.

Such currency swings can unwind carry trades, where investors borrow cheap yen to buy higher-yield assets like stocks or crypto. If Japan intervenes, it could pull money from risk assets, hitting Bitcoin hard.

US Political Drama Adds Pressure

In the US, Senate leader Chuck Schumer says Democrats will block a spending bill without changes to Homeland Security funding. This raises odds of a partial government shutdown.

Prediction markets like Polymarket give a 76% chance of a shutdown by month’s end. Past shutdowns have hurt Bitcoin at first with sell-offs, but often led to rallies later as markets rebound.

• Historical note: During prior US government standoffs, BTC faced initial pressure but found bottoms that sparked uptrends.
• Shutdowns tighten liquidity, making risk assets like crypto more volatile.

The Big Week Ahead: Fed Decision and Powell’s Words

The Federal Reserve’s first meeting of the year is key. Rates should stay steady, but Chair Jerome Powell’s press conference could shake things up. Markets hang on hints about future cuts or hikes.

Bitcoin now moves like a risk asset, tied to stocks and macro news. A dovish Powell (hinting at cuts) could boost BTC, while hawkish tones might push it lower. Watch for dollar strength too – a stronger USD often pressures crypto prices.

Big Tech Earnings: AI Buzz and Bitcoin Impact

This week brings results from tech giants like Microsoft, Meta, Tesla, and Apple – part of the “Magnificent 7.” Investors seek updates on AI spending and growth.

Positive AI outlooks could lift Nasdaq stocks, pulling Bitcoin higher since it correlates with tech. Weak results or cautious comments might spark a risk-off move across assets.

Other Crypto Updates: XRP Holds Support, KuCoin Surges

XRP fell 4% but steadies near $1.88 support after dropping from over $2. Traders watch if this level holds amid broader weakness.

Meanwhile, KuCoin exchange hit record volumes in 2025, trading over $1.25 trillion. Its growth beats the overall crypto market, grabbing more centralized exchange share.

What Does This Mean for Bitcoin Price?

reflects caution before these events. Short-term, BTC could test $85,000 support if risks pile up. But positive Fed signals or strong tech earnings might push it back toward $90,000+.

Key supports: $85,000, $80,000. Resistances: $88,000, $92,000.

1. Stay diversified: Mix BTC with stablecoins during volatility.
2. Watch correlations: BTC tracks Nasdaq closely now.
3. Long-term view: Halving effects and ETF inflows still support upside.

Final Thoughts

The crypto market braces for a packed week. could define Bitcoin’s path. Keep eyes on Powell, tech CEOs, and US politics. In thin trading, small moves can snowball – trade smart.

Bitcoin’s journey continues amid global risks, but history shows resilience after dips.