The crypto market faced a sharp correction over the weekend, with major altcoins like **Dogecoin (DOGE), Cardano’s ADA, and XRP** each dropping **over 7%** as traders cashed in profits following a week-long rally. Bitcoin (**BTC**) also saw a notable dip, falling from a daily high of **$111,200 to $107,000** on Friday, triggering a broader market downturn.

Key Drivers Behind the Drop

- Profit-Taking After Rally: The market had been on an upward trend, fueled by ETF inflows, stablecoin regulatory progress, and institutional interest. However, traders seized the opportunity to lock in gains ahead of the weekend.

- **Macro Fears Resurface**: Former U.S. President Donald Trump’s comments on potential **50% tariffs** on the EU reignited fears of a trade war, adding to market uncertainty.

- Bitcoin Volatility Spillover: BTC’s failure to hold above **$111,500** led to a swift sentiment shift, with traders rotating into stablecoins amid rising volatility.

Altcoins Hit Harder Than BTC

While Bitcoin’s dip was relatively contained (down ~4%), altcoins suffered steeper losses:

- $DOGE , $ADA , $XRP : All fell 7%+

- CoinDesk 20 Index (CD20): Dropped 2.2%

- Ethereum (ETH): Struggled to break past its 200-day moving average (~$2,650)

Analysts Weigh In: Is This a Short-Term Pullback or Start of a Deeper Correction?

- Haiyang Ru (HashKey Group): “BTC’s new ATH usually pulls altcoins up, but if volatility rises, traders may flee to regulated stablecoins.”*

- Alex Kuptsikevich (FxPro) “Unlike past rallies, this BTC move is backed by real demand and macro factors—but markets are now showing fatigue.”

What’s Next?

- If Bitcoin fails to establish a new support zone, altcoin losses could worsen.

- Weekend liquidity crunches often amplify sell-offs—watch for a potential rebound as trading resumes.

Bottom Line: The weekend sell-off highlights the **fragility of crypto rallies in low-liquidity conditions**. While the long-term uptrend remains intact, traders should brace for **continued volatility—especially if BTC struggles to hold key levels.

#TrumpTariffs #MarketPullback #DOGE #xrp