Bitcoin Price Plunge: BTC Dips Under <$88K> Amid , Tech Earnings Frenzy, and Shutdown Chaos

On a sleepy Sunday, Bitcoin took a sharp turn downward, breaking below the <$88K> level. This move marks a cooldown in the crypto market after a bumpy week. With low weekend trading volumes, even small shifts get magnified, and that’s what pushed BTC to around $87,800—a roughly 2% drop in the past day.

Market-Wide Pressure Hits Major Coins

The pain isn’t limited to Bitcoin. Ether (ETH) is heading toward $2,880, while Solana (SOL), XRP, and Cardano (ADA) have shed 3% to 5% each. Looking at the weekly chart, most top cryptocurrencies are deep in the red, signaling broad unease among investors.

This widespread decline points to a cautious mood. Traders are pulling back from riskier assets as key events loom on the horizon.

Massive Liquidations Shake the Market

The BTC price drop sparked over $224 million in long-position liquidations. Bitcoin futures saw the biggest hit at $68 million, with Ether close behind at $45 million. Tools like Coinglass and similar trackers show how over-leveraged bets unraveled quickly.

• Bitcoin futures: $68M liquidated
• Ether futures: $45M wiped out
• Total crypto liquidations: $224M+

These events are common on weekends when liquidity is thin. After last week’s ups and downs, many traders are de-risking ahead of a busy Monday.

Japan’s Yen Drama Adds Global Tension

Eyes are on Japan, where Prime Minister Sanae Takaichi labeled recent yen movements as ‘abnormal’ following a late-Friday rally. This has fueled worries of potential currency intervention, keeping Asian trading desks alert.

Even without official action, the ripple effects are felt worldwide. The yen’s strength threatens to unwind popular carry trades—strategies where investors borrow cheap yen to invest in high-yield assets like Bitcoin. If these trades reverse suddenly, it could trigger selling in volatile markets such as crypto.

Historically, yen interventions have led to short-term risk-off moves. Bitcoin, often seen as a high-beta asset, feels this pressure keenly.

US Politics Heat Up with Shutdown Risks

Back in the US, political gridlock is escalating. Senate leader Chuck Schumer stated Democrats will oppose a spending bill without cuts to Homeland Security funding. This raises the specter of a partial government shutdown.

Government shutdowns crimp liquidity and weigh on risk assets. Bitcoin has danced this dance before—initial sell-offs followed by rebounds once uncertainty clears. Prediction platforms like Polymarket now peg the shutdown odds at 76% by month’s end.

Investors remember 2018 and 2019 shutdowns, when BTC dipped pre-event but recovered strongly post-resolution. History might repeat here.

Fed Rate Decision Takes Center Stage

The week’s spotlight falls on the —the Federal Reserve’s first meeting of the year. Rates are likely to stay put, but Chair Jerome Powell’s press conference will be pivotal.