Crypto Markets Retreat as Altcoins Slide Amid Tariff Tensions
The cryptocurrency market took a sharp turn downward over the weekend as traders cashed in profits following a strong week, with altcoins bearing the brunt of the declines.
Dogecoin (DOGE), Cardano’s ADA, and XRP each dropped more than 7%, contributing to a 5% decline in overall crypto market capitalization. Bitcoin (BTC) also pulled back from a high of $111,200 on Friday to hover just above $107,000 after former President Donald Trump rekindled trade war fears by threatening steep tariffs on European imports.
The renewed geopolitical uncertainty rattled investors, prompting a broad sell-off across both crypto assets and riskier traditional investments. The CoinDesk 20 Index (CD20), which tracks major tokens, slid 2.2% amid heightened volatility and profit-taking.
Despite fresh all-time highs earlier in the week fueled by ETF inflows, institutional interest, and promising regulatory developments around stablecoins, altcoins failed to maintain momentum in the face of escalating trade tensions.
“Bitcoin’s strength generally lifts altcoins, but when volatility spikes due to external factors, capital tends to flow toward safer assets like stablecoins,” said Haiyang Ru, co-CEO of HashKey Group. He added that regulatory clarity in markets like the U.S. and Hong Kong is making stablecoins a preferred refuge for traders.
Ethereum (ETH) stalled near its 200-day moving average around $2,650, while tokens such as Hyperliquid’s HYPE and EIGEN, which had seen robust gains, retreated as market enthusiasm cooled.
FxPro analyst Alex Kuptsikevich pointed out that sentiment indicators had reached levels last observed in January, just as BTC and ETH faced key resistance. “This rally was supported by real demand and macro factors, but it’s not immune to sudden shocks,” he noted.
As the weekend unfolded, the market’s fragility was on full display. Analysts caution that without a solid new support level for bitcoin, altcoins may continue to experience significant pressure amid low liquidity and heightened uncertainty.
Share this content:
