Crypto Rally Stalls as Altcoins Tank and Traders Flee on Tariff Fears
A red wave swept across crypto markets heading into the weekend, wiping out a portion of the week’s gains as investors reacted to renewed geopolitical jitters and took profits off the table.
Major altcoins including Dogecoin (DOGE), Cardano’s ADA, and XRP fell over 7% in the past 24 hours, with the total crypto market capitalization sliding 5%. The pullback followed a drop in bitcoin (BTC), which fell from near-record highs of $111,200 to $107,000 late Friday after Donald Trump reignited trade war rhetoric with Europe.
The former president’s threat of a 50% tariff on EU imports and a 25% levy on non-U.S.-made iPhones spooked markets already showing signs of exhaustion. The CoinDesk 20 Index (CD20) fell 2.2%, led by weakness in high-beta tokens and speculative assets.
“Momentum was already waning after a massive run-up,” said Alex Kuptsikevich, chief market analyst at FxPro. “Once BTC started slipping, it triggered a chain reaction across the board—especially in the more volatile altcoins.”
Bitcoin had surged past $111,500 earlier this week on tailwinds from ETF inflows, increased institutional demand, and optimism around stablecoin regulation in the U.S. and Hong Kong. But those positives couldn’t hold up against fresh macro risk.
Haiyang Ru, co-CEO of HashKey Group, noted that bitcoin’s volatility often leads traders to rotate into safer, regulated stablecoins. “There’s growing comfort in transitioning to stablecoins as the regulatory landscape becomes more defined globally,” he said.
Ethereum (ETH) failed to hold above the $2,600 level, while smaller tokens that saw double-digit rallies earlier this month—such as HYPE and EIGEN—faced heavy selling.
The market now enters the weekend on uncertain footing, with analysts watching closely for bitcoin to establish new support. Without it, altcoins could continue bleeding, especially in low-liquidity conditions.
“The enthusiasm from earlier this week has clearly faded,” said one trader on X. “Now we wait to see if buyers step back in—or if this turns into a longer cooldown.”
