Bitcoin stumbled into the weekly close, shedding early gains as global markets prepared for a wave of macroeconomic catalysts that could trigger significant volatility in the days ahead.
The world’s largest cryptocurrency dipped to $87,471, marking a 1.6% pullback from previous highs, according to Cointelegraph. The retreat capped a choppy weekend that saw investor sentiment weaken across risk assets.
Market Caution Rises Ahead of Key U.S. Events
The broader crypto market showed signs of strain, with more than $250 million in long positions liquidated within 24 hours, per CoinGlass data, highlighting how traders were positioned for upside just as momentum shifted.
Market commentators pointed to a cluster of looming U.S. developments as the primary source of nerves.
The Kobeissi Letter, a popular macroeconomic analysis service, warned followers to “buckle up,” citing:
- The threat of a U.S. government shutdown
- President Donald Trump’s renewed tariff rhetoric targeting Canada
- A heavy slate of economic reports
- The Federal Reserve’s interest rate decision on January 28
Despite political pressure for rate cuts, expectations for a policy shift remain muted. CME Group’s FedWatch tool showed only a slim probability of a 0.25% rate cut, reinforcing projections that the central bank will stand pat.
“Earnings season has arrived and headwinds are mounting,” Kobeissi noted, underscoring the increasingly fragile backdrop for risk assets.
Traders Eye Key Levels as Downside Risk Dominates
Short-term Bitcoin traders spent the weekend reassessing their strategies as the price slipped below the mid-range of its recent trading channel.
Analyst CrypNuevo called the drop a “bearish signal,” suggesting that bulls must defend $86,300 to avoid deeper declines.
With elevated open interest heading into the weekly close, CrypNuevo warned that any brief rallies could become “short opportunities,” adding that a retest of the low-$80,000 range remains the most probable scenario if macro pressures intensify.
A Glimmer of Optimism: BTC vs. Silver Divergence
Not all analysts were pessimistic.
Michaël van de Poppe pointed to an unusual development in the BTC-to-silver ratio. Both gold and silver recently notched fresh all-time highs, but van de Poppe highlighted that Bitcoin may be forming a bullish divergence against silver on the three-day chart, something he says has never happened before.
According to him, such a divergence could signal that silver is nearing a short-term peak, potentially prompting capital to rotate out of precious metals and into other risk assets, including cryptocurrencies.
With macro uncertainty peaking, earnings season underway and political tensions brewing, analysts agree on one thing: the coming week could deliver outsized price swings.
Whether Bitcoin retests deeper support levels or capitalizes on shifting investor flows will likely depend on how markets digest the flurry of U.S. economic and political developments.
