Crypto Market Dips as Traders Cash Out Gains; Altcoins Take Bigger Hit
The cryptocurrency market lost momentum heading into the weekend, with profit-taking wiping out a chunk of recent gains. Total market capitalization dropped by 5% as traders exited positions after a week-long rally, spurred by renewed geopolitical jitters and signs of exhaustion across digital assets.
Among the hardest hit were Dogecoin (DOGE), Cardano’s ADA, and XRP — each falling over 7% in the past 24 hours. The pullback followed a steep drop in bitcoin (BTC), which fell from intraday highs near $111,200 to just above $107,000 on Friday. The downturn came as former President Donald Trump reignited trade war fears, threatening a 50% tariff on European Union imports over stalled negotiations.
The CoinDesk 20 (CD20) Index, tracking top liquid digital assets, declined 2.2% on the day, reflecting broad-based weakness across the board. Bitcoin’s decline was relatively modest, but it set off a sharper correction in altcoins, which had outpaced BTC earlier in the week.
Just days earlier, bitcoin had reached a new record above $111,500, buoyed by strong ETF inflows, momentum around stablecoin regulation, and growing institutional demand. However, these bullish catalysts haven’t been enough to sustain the rally in smaller tokens.
“Bitcoin making new highs often lifts altcoins in its wake,” noted Haiyang Ru, co-CEO of HashKey Group. “But increased volatility tends to push capital into regulated stablecoins, particularly as frameworks in the U.S. and Hong Kong make those transitions easier.”
FxPro’s chief analyst Alex Kuptsikevich echoed that view, highlighting that market sentiment had climbed back to levels last seen in January. “This time, the rally isn’t just speculative — it’s backed by real buying interest and macroeconomic developments,” he said. Still, he cautioned that key resistance levels for both BTC and ETH were causing hesitation.
Ethereum (ETH), for instance, is struggling to push past its 200-day moving average around $2,650. Meanwhile, high-flying tokens like HYPE and EIGEN, which had recently logged double-digit gains, are now experiencing pullbacks.
Analysts warn that if bitcoin fails to establish a strong new support level, losses among altcoins could accelerate.
For now, the market’s weekend retreat is a reminder of how fragile rallies can be in thinly traded conditions — and how quickly sentiment can swing.
