The cryptocurrency market faced a downturn over the weekend, with notable coins such as Dogecoin (DOGE), Cardano’s ADA, and XRP each experiencing declines exceeding 7% as traders began to lock in profits following a productive week.
Bitcoin’s value fell sharply from a height of $111,200 to about $107,000, amidst concerns of a possible tariff conflict between the U.S. and the European Union.
Despite highs earlier in the week, the market’s volatility and low liquidity fostered a pullback, shedding light on the temporary nature of recent gains.
Key Insights:
- Major cryptocurrencies faced steep declines, with significant profit-taking evident.
- Bitcoin’s rapid fall affected overall market sentiment, raising fears regarding ongoing tariffs.
- Declining market capitalization by 5% and a 2.2% drop in CoinDesk’s index indicated trader caution.
“Bitcoin reaching a new all-time high also carries altcoins toward a bullish direction,” stated Haiyang Ru, co-CEO of HashKey Group.
“However, if BTC’s volatility picks up again, traders may rotate into regulated stablecoins due to new frameworks in the U.S. and Hong Kong easing that transition.”
Market analysts are observing a potential exhaustion in trading momentum, with Ethereum struggling to surpass the 200-day moving average and other altcoins from earlier surges now experiencing cooldowns.
If Bitcoin fails to establish a solid support level, further altcoin declines could occur, demonstrating the market’s vulnerability under current low liquidity conditions and the rapid shift in trader sentiment.
