Dogecoin Dives 8%, Pepe Down 12% in Weekend Crypto Sell-Off
Crypto markets experienced a significant downturn over the weekend, with several major cryptocurrencies recording substantial losses. Dogecoin (DOGE) led the decline, plummeting over 8%, while Pepe (PEPE) shed 12%. Bitcoin (BTC) fell over 2%, trading below $104,000 and settling just above $103,600 during Asian afternoon hours on Saturday. The CoinDesk 20 index reflected the broader market weakness, slumping 4.2% within a 24-hour period.
Ether (ETH) also suffered, declining by nearly 4%, and other prominent cryptocurrencies such as XRP, BNB, ADA, and SOL experienced losses ranging from 2% to 5%. Cronos Network’s CRO bucked the trend, showing a 12% increase, although no immediate catalyst for this rise was identified.
Analysts attributed the widespread market downturn to escalating U.S.-China trade tensions. Alex Kuptsikevich, chief market analyst at FxPro, noted that renewed tariff-related concerns triggered the Friday market sell-off. This followed President Trump’s accusations of China violating a recent trade truce and Treasury Secretary Scott Bessent’s admission that talks with Beijing had stalled.
The derivatives market further underscored the growing investor caution. Open interest in Bitcoin futures has surged by 51% since April, while options contracts have seen an even more dramatic increase of 126%, according to Deribit data. This heightened activity in derivatives suggests a significant increase in speculative trading and hedging activity.
Adding to the bearish sentiment, large cryptocurrency holders (“whales”) who had been accumulating Bitcoin throughout the year recently shifted to net selling, transferring coins back to exchanges. This is a classic indicator of profit-taking, suggesting that some large investors are choosing to realize gains amidst the uncertainty.
Despite the current weakness, Kuptsikevich noted that Bitcoin’s immediate support level seems to be holding around $103,000. However, with the ongoing trade tensions and large investors reducing risk, the market remains poised for further volatility in the coming days. The combination of macroeconomic uncertainty and profit-taking by large investors points to a period of potential market instability in the short term.
