Crypto Market Turns Red as Bitcoin Falls Below $108K and Altcoins Drop

The cryptocurrency market saw a sharp decline over the weekend as major tokens like Dogecoin (DOGE), Cardano (ADA), and XRP each fell over 7%, with traders cashing out profits after a strong week. Bitcoin (BTC) slipped from a daily high of $111,200 to just above $107,000 on Friday, triggering a wave of negative sentiment.

The sell-off coincided with renewed geopolitical concerns, as President Donald Trump threatened 50% tariffs on European goods, reigniting fears of a trade war. This macro backdrop added pressure to the already overheated crypto market.

The CoinDesk 20 Index (CD20), which tracks top digital assets, dropped 2.2%, while total crypto market capitalization shed 5%. The pullback follows a recent BTC rally driven by ETF inflows, U.S. stablecoin legislation progress, and increasing institutional adoption. However, these bullish catalysts haven't been enough to support altcoins during heightened volatility.

HashKey Group’s co-CEO Haiyang Ru noted that while Bitcoin’s rise usually lifts altcoins, increased volatility often pushes traders toward regulated stablecoins, especially as new regulatory frameworks in the U.S. and Hong Kong make the shift easier.

Analysts like FxPro’s Alex Kuptsikevich highlighted that unlike previous surges, current BTC gains are backed by strong macro demand. Yet, market fatigue is showing, with Ethereum (ETH) unable to break its 200-day moving average near $2,650. Popular tokens such as HYPE and EIGEN, which saw sharp gains earlier, are also cooling off.

Experts warn that unless Bitcoin establishes solid support soon, further altcoin declines are likely. The weekend drop highlights the vulnerability of crypto rallies in thin liquidity environments and the speed at which market sentiment can reverse.