Bitcoin and major cryptocurrencies moved lower on Sunday as investors trimmed risk ahead of the Federal Reserve’s upcoming rate decision and a heavy week of earnings from U.S. tech giants.

Bitcoin slipped below $88,000 during thin weekend trading, extending a pullback that has pressured crypto markets over the past week. The largest digital asset was changing hands near $87,800 in U.S. afternoon hours, down roughly 2% over the past 24 hours, according to CoinDesk data.

Ether declined toward $2,880, while solana, XRP and cardano each fell between 3% and 5% on the day. On a weekly basis, most major tokens remain sharply lower, underscoring cautious sentiment and fragile positioning across the sector.

The latest decline triggered $224 million in liquidations of bullish positions over the past 24 hours. Bitcoin-linked futures accounted for about $68 million of those losses, while ether-based contracts saw roughly $45 million in liquidations, according to CoinGlass.

Weekend price moves are often driven more by positioning adjustments than new catalysts, particularly following heightened volatility earlier in the week.

Macro and political risks resurface

Traders are entering the new week alert to renewed volatility in the Japanese yen after Prime Minister Sanae Takaichi warned against “abnormal” currency moves. The comments followed a sharp reversal in the yen late Friday, prompting caution across Asian trading desks even as officials stopped short of signaling immediate intervention, Bloomberg reported.

U.S. political risk also weighed on sentiment. Senate Democratic leader Chuck Schumer said his party would block a major spending bill unless funding for the Department of Homeland Security is removed, raising the likelihood of a partial government shutdown.

While budget standoffs are familiar, they can tighten near-term liquidity and pressure risk assets, particularly during periods of elevated positioning. Historically, bitcoin has often come under pressure ahead of potential shutdowns, with rallies tending to follow once uncertainty fades.

Polymarket traders are currently assigning a 76% probability to a U.S. government shutdown by the end of the month.

Earnings and Fed decision ahead

Attention now turns to a busy week ahead, featuring earnings from several megacap technology companies, including Microsoft, Meta Platforms, Tesla and Apple — core members of the “Magnificent Seven.”

Markets will be watching closely for signals on artificial intelligence-related spending and demand. Management commentary on AI is likely to influence broader risk sentiment, with bitcoin — increasingly trading in step with equities — potentially reacting alongside stocks.

The Federal Reserve’s first rate decision of the year will also be closely watched. While policymakers are expected to keep rates unchanged, investors will scrutinize Chair Jerome Powell’s post-meeting press conference for clues on the timing and direction of future policy moves that could impact bitcoin, the dollar and other asset classes.