Bitcoin broke below $90,000 last week and slipped under the critical $88,000 support over the weekend. The daily chart shows this is the third test of that level within a week. Failure to reclaim $90K this week could open the door to a further decline toward $82,000.
Trump's Tariff Warning Against Canada
The weekend sell-off was triggered by President Trump's threat to impose 100% tariffs on certain Canadian imports if Ottawa strikes a trade deal with China. The news is expected to keep weighing on sentiment as trade war fears escalate.
Fed Rate Decision and Powell's Remarks
The Federal Reserve will announce its interest rate decision on Wednesday. While markets widely expect no change in rates, Chairman Jerome Powell's language could spur volatility. Traders will watch for hints on inflation and the economic outlook.
US Government Shutdown Risk Hits 75%
Prediction markets now assign a 75% probability of a US government shutdown at the end of the month. Senate Democrats led by Chuck Schumer have vowed to block a spending bill unless funding for the Department of Homeland Security is removed. A shutdown would likely pressure equities and spill over into crypto.
With a packed calendar of economic events, the crypto market faces elevated volatility this week.