this move added more fear to the crypto market. The drop extended a week long pullback that already pushed most major coins lower. Many traders were already nervous and this move made the mood even weaker.
At the time of the fall Bitcoin was trading near 87800. This was about two percent lower in one day. Other big coins also fell. Ether moved close to 2880. Solana XRP and Cardano also dropped between three and five percent. Over the last seven days most top coins are still down. This shows that confidence in the market is still low.
This price move caused many traders to lose money. Around 224 million dollars in bullish positions were closed. Bitcoin based futures saw about 68 million dollars wiped out. Ether futures lost around 45 million dollars. Many people used leverage and when prices moved fast their positions were forced to close.
Weekend trading is usually quiet. Big moves during this time are often caused by traders adjusting their positions instead of new news. After a very volatile week many people chose to reduce risk and this added pressure on prices.
Traders are now watching events outside crypto. One major focus is the Japanese yen. Officials in Japan warned about strange moves in the currency. The yen suddenly moved late last week and this made traders nervous. If Japan steps in to control the yen it could affect global markets.
There is also political tension in the United States. Lawmakers are arguing over a spending bill. Some leaders said they will block it unless certain funding is removed. This has raised the risk of a partial government shutdown. When this happens markets often feel stress because it can affect money flow and confidence.
Earlier in the week Bitcoin also dropped below 90000. At the same time more than one billion dollars in leveraged positions across crypto were closed. This happened as traders reacted to fast changes in currency and bond markets. Many people decided to cut their risk and move to safer positions.
Now the market is waiting for the new week to begin. Traders are watching big tech company earnings because they can influence overall market mood. When stock markets feel weak crypto often follows.
Another key event is the next Federal Reserve meeting. Most people expect rates to stay the same. This shows that the central bank is waiting to see how the economy moves. Even when nothing changes markets can still react because people look for hints about the future.
For now the crypto market remains in a fragile state. Many traders are cautious. Prices can still move fast because fear and leverage are still present. Bitcoin going below 88000 is a sign that the market needs time to find balance again.
The coming days will be important. Global events currency moves and political news will all play a role. Until confidence returns traders will likely stay careful and avoid taking big risks.
