The crypto markets took a sharp turn this weekend, and it wasn’t pretty. Dogecoin ($DOGE ), Cardano’s ADA, and XRP each tumbled more than 7%, as traders scrambled to take profits after what had been a solid week for digital assets.
Bitcoin was leading the charge earlier, touching a fresh all-time high of $111,500 just days ago. But things quickly reversed on Friday when #BTC dropped from a daily high of $111,200 down to just above $107,000. This sharp fall sparked panic across the market. What triggered the sell-off? A surprising twist in the geopolitical scene — former U.S. President Donald Trump reignited fears of a potential tariff war with the European Union, threatening a massive 50% levy as trade talks reportedly stalled.
This sudden shift rattled investor confidence. The total crypto market cap shed nearly 5%, and the CoinDesk 20 (CD20) index, which tracks the biggest digital assets, slipped 2.2%. It was clear: traders were moving quickly to lock in profits, not willing to take chances in such volatile conditions.
Despite the dip, it’s important to note that Bitcoin’s recent rally was powered by some strong fundamentals — think ETF inflows, stablecoin legislation, and rising institutional demand. But for now, those bullish factors weren’t enough to keep altcoins from bleeding.
As Haiyang Ru, co-CEO of HashKey Group, put it, “Bitcoin hitting new highs usually lifts altcoins too, but when BTC gets volatile, traders prefer the safety of regulated stablecoins — especially now that U.S. and Hong Kong are making it easier to shift into them.”
On the sentiment side, Alex Kuptsikevich, chief analyst at FxPro, noted that crypto market optimism recently reached levels not seen since January. Still, he warned that we’ve hit major resistance zones, and markets are starting to show signs of exhaustion.
Ethereum, for instance, is struggling to break above its 200-day moving average around $2,650. And several altcoins that had been on fire — like HYPE and EIGEN — are now cooling off after explosive double-digit gains.$DOGE
Unless Bitcoin can establish a strong new support level, we could see altcoins take an even deeper hit in the coming days. This weekend’s sudden pullback is a reminder of how fragile crypto rallies can be, especially in thinly traded conditions where sentiment can turn on a dime.
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