The crypto market faced sharp declines as fresh U.S.-China tariff tensions, large Bitcoin whale sell-offs, and a cautious risk sentiment weighed on investor confidence.

Dogecoin (DOGE) led the downturn among major altcoins, plunging over 8%, while meme token Pepe (PEPE) fell 12% during weekend trading.

Bitcoin dropped more than 2%, slipping under the $104,000 mark and hovering near $103,600 in Asian afternoon trading. The broader crypto market, measured by the CoinDesk 20 index, declined 4.2% in the last 24 hours.

Other major tokens also suffered losses: Ether (ETH) fell close to 4%, XRP, BNB Chain (BNB), Cardano (ADA), and Solana (SOL) slid between 2% and 5%. The only standout in the top 100 tokens was Cronos Network’s CRO, which gained 12% without an obvious driver.

Market analysts linked the sell-off to escalating trade tensions between the U.S. and China.

“Markets turned sharply lower on Friday as worries about tariffs resurfaced,” said Alex Kuptsikevich, chief market analyst at FxPro, in an email to CoinDesk. “President Trump accused China on social media of breaching the recent trade truce, while Treasury Secretary Scott Bessent confirmed that negotiations have stalled.”

Data from Deribit showed a surge in investor caution, with Bitcoin futures open interest up 51% since April and options volume increasing by 126%.

Meanwhile, large Bitcoin holders, or whales, who had been net buyers throughout the year, have recently become net sellers, transferring coins back to exchanges in what is commonly interpreted as profit-taking behavior.

“Bitcoin’s support level around $103,000 remains intact for now,” Kuptsikevich noted. “However, with tariff tensions escalating and whale activity indicating risk reduction, traders should expect increased volatility in the near term.”