The crypto market turned red over the weekend, with Dogecoin (DOGE), Cardano’s ADA, and XRP each dropping over 7% as profit-taking set in after a strong week.
Bitcoin fell from a daily high of $111,200 to just over $107,000 on Friday, causing a swift change in sentiment. The drop came as President Donald Trump revived fears of a tariff war with the European Union — threatening a 50% levy as talks were “going nowhere.”
As a result, the market cap shed 5%, and the broad-based CoinDesk 20 (CD20), a liquid index tracking the largest tokens, fell 2.2% as traders moved to lock in gains amid rising volatility.
This downturn occurs despite Bitcoin recently touching fresh highs above $111,500, buoyed by ETF inflows, stablecoin legislation, and increasing institutional buying. Yet, these reinforcing factors have not managed to sustain alternate cryptocurrencies (altcoins) in the short term.
“Bitcoin reaching a new all-time high also carries altcoins toward a bullish direction,” remarked Haiyang Ru, co-CEO of HashKey Group, in a Telegram message. “However, if BTC’s volatility picks up again, traders may rotate into regulated stablecoins, especially with new frameworks in the U.S. and Hong Kong easing that transition.”
Alex Kuptsikevich, chief analyst at FxPro, noted that crypto sentiment has recently hit levels last seen in January, just as BTC and ETH reached critical resistance zones. He stated, “Unlike previous BTCUSD rallies, the current movement is not just momentum-driven but backed by real demand and macro factors.”
Nevertheless, the markets are showing signs of fatigue. Ethereum is struggling to break past its 200-day moving average near $2,650, while altcoins that previously surged — such as HYPE and EIGEN — are now cooling off after experiencing double-digit gains.
Analysts have cautioned that if Bitcoin fails to establish a new support zone, the losses for altcoins could deepen significantly.
For now, the weekend pullback highlights the fragility of rallies in low-liquidity conditions and how quickly market sentiment can shift.
