Bitcoin fell below the $88,000 level on Sunday as cryptocurrency markets weakened in thin weekend trading, extending a pullback that has weighed on the cryptocurrency market for the past week.
BTC traded around $87,800 in US afternoon hours, down about 2% in 24 hours, according to data from CoinGecko. Ether fell towards $2,880, while solana, XRP and cardano each recorded losses of between 3% and 5% on the day. Most major tokens remain lower in seven days, reflecting the fragile mood across the market.
The move sparked liquidations of $224 million in bullish bets, led by $68 million in bitcoin-tracked futures and $45 million in ether-based futures.
Weekend moves are often driven less by new information and more by positioning adjustments, particularly after periods of higher volatility earlier in the week.
Traders are entering the new week on high alert for possible intervention in the Japanese yen after Prime Minister Sanae Takaichi warned against “abnormal” market moves, comments that followed a sudden yen reversal on Friday night.
The currency’s sharp rally sparked caution on Asian trading desks, even as officials stopped short of confirming any action, according to Bloomberg.
Elsewhere, political risk in the United States added to an already unstable context.
Senate Democratic Leader Chuck Schumer said his party would block a major spending package unless funding for the Department of Homeland Security is defunded, raising the risk of a partial government shutdown.
While these clashes are familiar, they can tighten short-term liquidity conditions and affect confidence in risk assets, particularly during periods of elevated positioning.
The latest drop follows a stretch that saw Bitcoin briefly lose the $90,000 level amid heavy selloffs and broader macroeconomic uncertainty. More than $1 billion in leveraged positions were wiped out earlier in the week as traders reduced their exposure following sharp moves in the currency and bond markets.
Attention now turns to next week, with investors also expecting a strong earnings week that will include results from several large-cap technology companies.
The Federal Reserve is widely expected to keep rates steady at its next meeting, reinforcing a wait-and-see tone after last year’s easing cycle.
