Bitcoin crashes below $87,000, market swings due to Trump's tariffs and Fed decisions

Source: TokenPost Original Title: Bitcoin($BTC ), Breaking the $87,000 Level… Market Shaken Ahead of Trump Tariff Pressure and Fed Decisions Original Link:

Bitcoin Weakness Deepens, Macroeconomic Uncertainty Increases

Bitcoin(BTC) price declined over the weekend, once again testing macroeconomic uncertainty. As the US Federal Reserve(Fed) prepares to announce interest rate decisions, concerns over a government shutdown, and Trump's trade pressure, investor sentiment appears to be subdued heading into this week.

On the 26th(local time), Bitcoin traded at $87,471(approximately 127.29 million won), down 1.6%, reaching its lowest level in several days according to cryptocurrency exchange data. According to CoinGlass, futures positions liquidated within a day exceeded $250 million(approximately 36.38 billion won), most of which were leveraged 'long' positions.

Market analysis platforms cite the potential US government shutdown and Trump's tariff threats against Canada as the main causes of this decline. Trump has warned of imposing 100% tariffs on Canada, and along with US stock futures, the Bitcoin market is signaling a turbulent week ahead.

Attention on Fed Decision, Very Low Probability of Rate Cuts

The Federal Open Market Committee(FOMC) meeting scheduled for this week is on the 28th, with markets leaning towards a hold. According to CME(CME) FedWatch Tool, the probability of a rate cut is extremely low, and despite President Trump’s ongoing demands for rate reductions, most analysts believe policy changes are unlikely in the immediate future.

Technical Analysis: $86,300 as a Key Support Level

In the short-term charts, Bitcoin shows signs of strengthening its bearish trend. Cryptocurrency traders commented, "The price broke below the mid-range zone," and "If this continues, there’s a high chance of further decline toward the low range, which is the trend’s bottom." The key support level is $86,300(approximately 125.61 million won), and if this level is broken, a larger correction is inevitable.

"Considering the macroeconomic risks linked to the current stock market and the liquidation of high-risk Bitcoin positions, there is a high likelihood of falling into the early $80,000s," they said, adding, "Even if a rebound occurs this week, it could serve as a 'short' investment opportunity."

Opportunities Amid Increased Volatility

Amid increasing bets on downside, some analysts see opportunities arising from heightened volatility. A crypto trader stated, "While gold and silver are hitting all-time highs, Bitcoin might show a 'bullish divergence' against silver for the first time." This suggests that Bitcoin could form a bottom and enter a new phase technically, and "This week is expected to be highly volatile, which could signal capital moving from silver to other assets."

Bitcoin futures open interest surged sharply over the weekend, attracting investor attention. While the market is currently moving with short-term sell-offs and uncertainty, focus should be on whether a trend reversal will occur during this week marked by significant volatility.