Bitcoin Slides Toward $87K as U.S. Shutdown Fears Trigger Broad Crypto Risk-Off

Bitcoin extended its recent pullback late Sunday, drifting toward the $87,000 level as a wave of risk-off sentiment swept across global markets. The move came alongside broader weakness in digital assets, underscoring crypto’s growing sensitivity to macro and political stress.

Over the past 24 hours, Bitcoin slipped nearly 2% to around $87,158, while Ethereum dropped more than 3% to trade near $2,847. The downturn unfolded at the start of the week with no major crypto-specific catalyst, pointing instead to mounting concerns in traditional markets.

At the center of the pressure is rising anxiety over a potential U.S. government shutdown. Ongoing funding disputes in Congress, including friction around Department of Homeland Security financing, have lifted political risk premiums across equities, bonds, and digital assets alike. With memories of past prolonged shutdowns still fresh, markets have turned increasingly defensive.

Prediction markets are reflecting that caution, with the implied probability of a shutdown climbing sharply as spending negotiations remain stalled. This backdrop has weighed heavily on institutional positioning in crypto. U.S. spot Bitcoin exchange-traded funds recorded their weakest week since February 2025, posting roughly $1.33 billion in net outflows for the week ending January 23, according to industry data.

While some selective buying has appeared in crypto-related equities, overall ETF flow trends suggest institutions are dialing back exposure at the margin rather than adding aggressively. The result has been softer demand for Bitcoin during a period of heightened macro uncertainty.

Looking ahead, traders are expected to stay focused on macro signals rather than token-specific developments. This week’s Federal Reserve interest rate decision, along with U.S. producer price index data, could shape near-term expectations around inflation and monetary policy. In the crypto market, attention remains on whether ETF outflows stabilize and whether Bitcoin can defend its recent support zones amid an increasingly cautious global backdrop.