The cryptocurrency market experienced a tumultuous weekend, with notable altcoins Dogecoin (DOGE), Cardano’s ADA, and XRP each plummeting over 7%. This decline, which began on Friday, appears to be fueled by traders cashing out after a robust prior week. Adding to the market’s woes, Bitcoin tumbled from a daily high of $111,200 to just above $107,000, largely influenced by President Donald Trump’s renewed threats of a 50% tariff on the European Union, a move that has reignited concerns over a potential trade war.
The Weekend Bloodbath
In the blink of an eye, the market cap shed 5%, while the CoinDesk 20 (CD20), an index tracking the largest tokens, saw a 2.2% drop. The abrupt shift in sentiment was particularly striking given Bitcoin’s recent flirtation with record highs above $111,500, buoyed by bullish factors such as ETF inflows, supportive stablecoin legislation, and institutional buying. Yet, these positive undercurrents haven’t been enough to shield altcoins from the storm. As explored in our recent coverage of Dogecoin, XRP ETF hopes, the market’s optimism was partly driven by potential ETF listings, which now face renewed skepticism.
“Bitcoin reaching a new all-time high also carries altcoins toward a bullish direction,” noted Haiyang Ru, co-CEO of HashKey Group, in a Telegram message. “But 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.” His insights underscore the current fragility of altcoin markets, which are often swept along by Bitcoin’s tides.
Market Sentiment: A Double-Edged Sword
Despite the recent rally, crypto sentiment is showing signs of strain. Ethereum, for instance, is grappling with its 200-day moving average near $2,650—a critical threshold it has yet to surpass. Other altcoins like HYPE and EIGEN, which enjoyed meteoric rises, are now cooling off, reflecting the broader market’s fatigue.
Alex Kuptsikevich, chief analyst at FxPro, highlighted that crypto sentiment recently hit levels unseen since January, coinciding with Bitcoin and Ethereum approaching critical resistance zones. “Unlike previous BTCUSD rallies, the current movement is not just momentum-driven but backed by real demand and macro factors,” he observed. However, he cautioned, without a new support zone for Bitcoin, altcoin losses could deepen, potentially dragging the broader market with them.
Historical Context and Future Implications
Historically, the crypto market has been no stranger to volatility, often experiencing sharp fluctuations in response to geopolitical events and regulatory developments. The current downturn, while unsettling, isn’t unprecedented. Yet, it raises pertinent questions about the sustainability of recent gains and the resilience of altcoins in a volatile environment. For a deeper dive into the regulatory implications, see our coverage of Nasdaq’s SEC approval request for a Dogecoin ETF.
The broader implications of this weekend’s pullback are yet to unfold. Market participants are keenly watching for signs of stabilization or further decline, particularly as Bitcoin’s price action continues to set the tone for the market. The interplay between regulatory developments—such as stablecoin frameworks—and market dynamics will be crucial in shaping the landscape in the coming months.
In conclusion, while the weekend’s bloodbath highlights the market’s susceptibility to sudden shifts, it also underscores the ongoing evolution of the crypto space. As traders and analysts alike navigate these choppy waters, the quest for stability and growth in a rapidly changing environment remains at the forefront. Whether Bitcoin and its altcoin companions can chart a course through these turbulent times remains to be seen.
Source
This article is based on: Dogecoin, Cardano’s ADA, XRP Fall 7% in Weekend Bloodbath
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.
