Crypto Market Faces Rising Volatility as Bitcoin Slides on Macro Uncertainty

Fear returned to the crypto market late Sunday as Bitcoin prices slipped amid growing macroeconomic and political risks, amplified by thin weekend liquidity. The decline reflects rising uncertainty among traders as global policy concerns, trade tensions, and currency stress tighten financial conditions and pressure risk assets, including cryptocurrencies.

Bitcoin fell below key short-term support levels during weekend trading, triggering increased selling activity. At the time of writing, BTC was trading around $87,039, down 2.58% over the past 24 hours and nearly 9% on the week, according to market data. Analysts broadly describe the move as a correction rather than a full-scale crash, noting that similar pullbacks are common during periods of heightened macro risk. As Bitcoin weakened, major altcoins followed suit, with Ethereum, XRP, and Solana posting losses of approximately 3%, 2%, and 4%, respectively.

The crypto market enters the new week under pressure as U.S. political uncertainty dominates headlines. A budget standoff in Congress has raised fears of a potential government shutdown before the end of the month. Prediction markets show shutdown probabilities surging sharply, and such an outcome could suspend key economic data releases, including jobs and inflation reports. This data blackout would complicate decision-making for the Federal Reserve, historically leading to higher market volatility.

Trade tensions have also resurfaced after former U.S. President Donald Trump floated the idea of imposing 100% tariffs on Canadian goods, citing Canada’s expanding trade ties with China. Historically, aggressive tariffs act as a consumer tax, dampen equity markets, and raise inflation expectations, all of which weigh on broader risk sentiment.

Adding to global uncertainty, the Japanese yen weakened significantly, trading between 155 and 160 per dollar, levels not seen in decades. Currency instability has further tightened global liquidity conditions, contributing to fragile market positioning and rapid repricing across asset classes.

Analysts note that current risks are driven more by positioning and liquidity concerns than by structural weaknesses in the crypto market. Some point to a CME gap near $89,400 that could allow for a short-term Bitcoin bounce. However, with GDP data, Federal Reserve decisions, balance sheet updates, and policy remarks ahead, the crypto market is bracing for a volatile and uncertain week.