The cryptocurrency market has once again reminded investors why it can be one of the most unpredictable places to put their money. Over the weekend, Bitcoin dropped below $93K, while many altcoins took an even harder hit, with 1/3 of major ones losing over 20% of their value.
The cause was mostly Donald Trump’s announcement of new tariffs sent shockwaves across global markets, with stocks and crypto reacting strongly. Some speculate that crypto took the full extend of investor panic because traditional markets remained closed on the weekend. But does this mean we’re heading for a prolonged downturn, or is this just another temporary shake-up?
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Is It Time to Panic?
Social media has been filled with dramatic reactions, with some investors worried that this drop signals the start of a deeper correction. But before making any rushed decisions, it’s worth looking at the bigger picture.
Just few days ago, excitement was building around potential ETF approvals for major altcoins and Bitcoin Reserve discussions. Those fundamental drivers have not disappeared overnight. While it’s easy to get caught up in short-term fear, the long-term outlook for crypto remains strong.
Many coins have already started recovering. A quick glance at the charts shows that while the initial drop was steep, a bounce followed. This suggests that investors still have confidence.
Bitcoin’s Position
Bitcoin has handled the crash better than most other coins. It briefly dipped under $93K but quickly rebounded and now sits around $98K.
Despite the weekend volatility, Bitcoin’s overall trend remains somewhat stable. It’s still trading near $100K, relatively close to its all-time high, and Bitcoin Dominance has surged past 60%. This suggests that while some investors moved out of altcoins, they are still holding onto Bitcoin as a safer option.
Ethereum’s Struggles
Ethereum has had a rougher time. The price dropped near $2,500, a level not seen since before Trump’s election victory. It’s also similar to where it stood a year ago – before Ethereum ETFs became a reality.
Many investors have started questioning Ethereum’s strength, especially compared to other altcoins. While it has historically been the number two crypto, its performance in recent months has been underwhelming. The upcoming months will be crucial in determining whether Ethereum can regain its momentum or if it will continue to lag behind.
Ripple’s Comeback
Ripple fell to a monthly low of $2.10 but has bounced back aggressively. It’s currently nearing $2.50, gaining over 10% in just the last hour.
The drop was concerning, but compared to January’s correction, but except for a short dip it wasn’t significantly worse. This fast recovery suggests that investors still see potential in Ripple, and the weekend panic didn’t erase its long-term prospects.
Solana Holds Strong
Among major altcoins, Solana managed to hold up better than most. While it fell below $200, it only for a brief moment dived below its monthly low.
Now, it’s recovering quickly – similar to Ripple. While some coins struggled to regain momentum, Solana seems to be maintaining strong investor confidence.
Memecoins Got Hit Hard
If there was one category that suffered the most, it was memecoins. Many of them saw losses of over 20%, with DOGE briefly dipping below $0.25 – a level not seen in a long time. However, like the rest of the market, they are now rebounding.
TRUMP, the memecoin tied to Donald Trump, fell under $20 for the first time since its launch. On the other hand, MELANIA is climbing back at a much slower pace and is still stuck below $1.50.
Where Do We Go From Here?
It’s understandable to feel uneasy after a sharp drop, but crypto has seen worse and recovered stronger. If history is any guide, these moments of panic are often followed by renewed confidence.
For those holding long-term, the fundamentals that drove crypto’s growth are still intact. ETF approvals, institutional adoption, and potential Bitcoin Reserve developments remain in play.
Need a quick and easy way to see what’s happening in crypto over the next few days? Check out our Crypto Events Calendar!
