The crypto market took a steep hit during the weekend, mirroring an abrupt change in world traders’ sentiments. Bitcoin was already dipping from a high of $111,200 to levels just above $107,000 in hours of trading reaction.
This decline followed soon after former US President Donald Trump sparked fears that he could trigger a tariff war with the European Union again. His warning that he would slap a 50% levy sent jitters among traders, distracting them from risky assets.
Altcoins were not spared either because of this sudden drop in the market along with ongoing geopolitical tensions. The three, i.e., Cardano’s ADA, XRP, and Dogecoin, all lost value by more than 7% because of rising profit-taking. The losses came after a previous week’s bull run when Bitcoin jumped above $111,500 due to ETF flows and increased institutional demand.
Bitcoin surged because of regulatory changes and institutional buys, while altcoins lagged. Ethereum failed to break its $2,650 ceiling, suggesting dwindling momentum. HYPE and EIGEN, after recent spikes, dropped after traders shifted into safer, stable assets
Crypto market cap falls amid uncertainty
The broader CoinDesk 20 index, which consists of leading liquid tokens, lost 2.2% in the same timeframe. Total market cap declined 5%, indicating just how fast euphoria can dry up in turbulent conditions. A few experts now estimate that if Bitcoin cannot sustain new areas of support, deeper losses in altcoins will soon be next in line.
Sentiment in the market hit levels not seen since January as traders aggressively responded to new macroeconomic concerns. Under such low liquidity conditions, price volatility continues to be acute and abrupt, with rallies tending to get knocked out swiftly under selling pressure.
The sudden weekend turnaround reminded everyone that crypto upswings continue to be susceptible under shaky global conditions. Traders will now keep a close eye to watch for Bitcoin’s stability or further decline below critical support levels in the next few days.
