Crypto markets faced a sharp downturn over the weekend, with several major altcoins posting double-digit losses. Dogecoin (DOGE) plunged more than 8%, while meme coin favourite Pepe (PEPE) dropped a staggering 12% — leading the pack in one of the most severe weekend slides in recent months.
Bitcoin (BTC), the world’s largest cryptocurrency by market cap, was not immune to the decline. It fell over 2%, dipping below $104,000 and trading just above $103,600 during Saturday’s Asian trading hours. The broader CoinDesk 20 Index, which tracks the largest and most liquid digital assets, slid 4.2% over the past 24 hours.
Trade Tensions Reignite Market Fears
Analysts point to the re-emergence of geopolitical uncertainties as a major catalyst behind the weekend rout. Renewed U.S.-China tariff tensions have shaken investor confidence, sparking a wider risk-off mood across global markets. Former President Donald Trump accused China of breaching a recent trade truce, while Treasury Secretary Scott Bessent acknowledged that negotiations with Beijing had stalled.
“Markets went red on Friday on renewed tariff-related apprehensions,” said Alex Kuptsikevich, chief market analyst at FxPro. The revived trade rhetoric not only impacted equities but also spilled over into the digital asset market, which has historically reacted sharply to macroeconomic shifts.
Whale Activity and Derivatives Data Raise Caution
Adding to the bearish pressure, on-chain data shows that Bitcoin whale wallets — large holders of the asset — have flipped from accumulation to selling. These high-net-worth wallets have begun sending coins back to exchanges, typically a sign of profit-taking or preparation for further downside.
Meanwhile, the derivatives market reveals a growing sense of caution among investors. Open interest in Bitcoin futures has surged 51% since April, while options volume has ballooned by a dramatic 126%, according to Deribit data. The spike suggests traders are increasingly hedging their positions or betting on further volatility in the near term.
Major Altcoins Follow Bitcoin’s Slide
The bearish sentiment wasn’t limited to Bitcoin and meme coins. Ethereum (ETH) fell nearly 4%, while XRP, BNB Chain (BNB), Cardano (ADA), and Solana (SOL) all recorded losses ranging from 2% to 5%. The widespread nature of the downturn indicates a general aversion to risk rather than issues tied to individual tokens.
Interestingly, Cronos Network’s native token CRO emerged as the only gainer among the top 100 coins, rising 12% despite the broader negative trend. However, analysts have noted no immediate catalyst for the token’s rise, suggesting the spike may be an outlier or driven by isolated investor activity.
What Lies Ahead?
Looking forward, short-term support for Bitcoin is expected to hold near the $103,000 mark, according to Kuptsikevich. However, the combination of geopolitical stress, whale-driven sell pressure, and heightened derivatives activity means that the road ahead is likely to remain bumpy.
Market participants are now closely watching for any fresh developments in U.S.-China relations or central bank policy that could either restore confidence or deepen the current slump. Until then, traders may continue to adopt a defensive stance, with volatility likely to stay elevated in the days to come.
