Bitcoin has slipped below the $88,000 level, trading around $87,800, as cryptocurrency markets brace for a pivotal week packed with U.S. macroeconomic events that could dictate the digital asset's next major directional move. The broader market is showing fragility, with Ether falling toward $2,880 and tokens like Solana, XRP, and Cardano posting daily losses between 3% and 5%.
The upcoming week features a dense schedule of five key events: Monday's Federal Reserve GDP report, Tuesday's estimated $8.3 billion liquidity injection, Wednesday's Fed interest rate decision, Thursday's U.S. balance sheet update, and a Friday speech from a Federal Open Market Committee (FOMC) president. While the Fed is widely expected to hold rates steady, the policy statement's language on inflation and growth will be scrutinized for clues on future monetary policy.
Market participants are positioning cautiously, with the recent price dip causing $224 million in liquidations on bullish bets, including $68 million in Bitcoin-tracked futures. This follows a volatile week where over $1 billion in leveraged positions were wiped out. Analysts note that Bitcoin has shown increasing sensitivity to U.S. macro signals as institutional participation grows, with liquidity trends and policy messaging historically influencing trading activity.
Adding to the unsettled backdrop are external risk factors, including potential intervention in the Japanese yen after Prime Minister Sanae Takaichi warned against "abnormal" market moves, and political risk in the U.S. that raises the threat of a partial government shutdown. Traders are also monitoring a heavy earnings week for megacap technology firms, which could further impact risk sentiment across all markets.
