Cryptocurrency markets experienced a turbulent weekend as Dogecoin (DOGE) plummeted over 8% and Pepe (PEPE) took a 12% hit, marking significant losses among major digital assets. As of Saturday afternoon in Asia, Bitcoin slipped over 2% to just above $103,600, while the broader CoinDesk 20 index fell 4.2% in the past 24 hours. This downturn is attributed to escalating U.S.-China trade tensions, which have reignited investor concerns.
Market Turbulence and Trade Tensions
The cryptocurrency market’s latest stumble comes amid renewed fears over trade relations between the United States and China. Alex Kuptsikevich, chief market analyst at FxPro, noted, “Markets went red on Friday on renewed tariff-related apprehensions.” President Trump’s accusations against China for breaching a recent trade truce, coupled with Treasury Secretary Scott Bessent’s admission of stalled negotiations, have evidently spooked investors. This echoes sentiments from our recent coverage where Bitcoin Traders Eye Breakout to New Highs as Trump Says Tariff Deals Progressing.
The derivatives market data paints a picture of increasing caution. Deribit reports a 51% rise in open interest for Bitcoin futures since April, and a staggering 126% increase in options, indicating heightened investor wariness. This sentiment is further reflected in the behavior of whale wallets, which have shifted from accumulation to net selling—indicative of a classic profit-taking strategy.
Ripple Effects Across the Crypto Sphere
The broader cryptocurrency landscape mirrored Bitcoin’s struggles. Ether (ETH) saw a near 4% drop, while XRP, BNB Chain (BNB), Cardano’s ADA, and Solana’s SOL experienced losses ranging from 2% to 5%. Interestingly, amid the sea of red, Cronos Network’s CRO emerged as the lone gainer among the top 100 tokens, advancing 12% without any apparent catalyst.
Such market dynamics raise questions about the sustainability of current support levels. Kuptsikevich pointed out, “Bitcoin’s local support looks solid around $103K for the coming days,” but also cautioned about potential volatility due to ongoing tariff headlines and whale activity. Traders are bracing for more fluctuations as these variables continue to unfold. This follows a pattern observed in Bitcoin Jumps Above $97K as Traders Optimistic U.S.-China Trade Deal Possible.
Historical Context and Forward Outlook
This isn’t the first time geopolitical tensions have sent ripples through crypto markets. Historically, macroeconomic events have had a significant impact on digital asset valuations, with investor sentiment often swaying dramatically in response to global news. The current situation underscores the interconnectedness of crypto markets with broader economic uncertainties.
Looking ahead, the market’s trajectory remains uncertain. The interplay of geopolitical developments and investor behavior could continue to drive volatility. As Kuptsikevich highlights, the coming days may see more dramatic swings as traders navigate these choppy waters. The question on many minds: Can the market find stability amid such turbulence?
In the meantime, crypto enthusiasts and investors alike will be watching closely. With both macroeconomic and market-specific factors at play, the path forward is anything but clear-cut. Whether this weekend’s sell-off marks a temporary blip or the start of a more prolonged downturn remains to be seen.
Source
This article is based on: Dogecoin Dives 8%, Pepe Down 12% in Weekend Crypto Sell-Off
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
