Bitcoin Falls Below $88K Amid U.S. Shutdown Risk, Pre-Fed Decision

Bitcoin dropped below $88,000 on Sunday, January 25, extending a week-long pullback as traders weighed risks of a potential U.S. government shutdown and awaited the Federal Reserve's first policy decision of the year. The broader crypto market weakened, with over $224 million in long positions liquidated in 24 hours. BTC traded around $87,800, down 2% on the day, with Ether falling toward $2,880. Major altcoins Solana, XRP, and Cardano lost 3%-5%. Traders are on alert for potential Japanese yen intervention after official warnings, adding to market unease. Polymarket traders assign a 76% chance of a U.S. government shutdown by month-end. Attention this week shifts to the Fed's expected steady rate decision and commentary from Chair Jerome Powell, alongside earnings from major tech firms like Microsoft and Apple. Bitcoin, trading as a risk asset, may react to these macro and corporate catalysts.