Stock Markets slumped over the weekend after US equity futures pointed sharply lower, surrounding potential trade wars under Donald Trump's policies triggering fears of new tariffs, regulations, and restrictions influencing digital assets which will hit global growth soon. This sparked over $2.1 billion in crypto liquidations.

Bitcoin breaching $90,000 is more than just a round-number headline — it’s a seismic event that ripples through every corner of crypto markets. For traders and portfolio managers, it often signals a shift in risk appetite and liquidity that can either lift altcoins alongside Bitcoin or, paradoxically, crush many of them as capital consolidates into the king coin. Understanding which tokens are most at risk when Bitcoin rallies to these levels boils down to three things: correlation and market structure, liquidity and concentration, and the narrative that’s driving the move.

These mechanics determine whether money spreads out into smaller projects or collapses back to the largest, most liquid asset. Recent moves above $90k have been accompanied by commentary that Bitcoin is reclaiming its role as “digital gold,” attracting safe-haven and institutional flows rather than pure speculative leverage — and that has a predictable impact on more speculative corners of the market.

First, the most vulnerable category is small-cap tokens and memecoins that rely almost entirely on speculative retail momentum. These assets often enjoy huge percentage gains in bullish phases but have shallow order books and limited long-term holders. When Bitcoin rallies strongly, speculative capital frequently rotates: either it chases Bitcoin’s momentum (if BTC is still seen as the best short-term play) or it flees to other risk-on altcoins in an “altseason.” Which path prevails depends on whether the rally is being driven by macro liquidity and institutional buyers or by retail FOMO and leverage. When institutional flows dominate — for example, large ETF inflows, whale accumulation, or corporate treasuries buying BTC — capital gravitates toward Bitcoin’s liquidity pools and away from tiny tokens, leaving microcaps exposed to rapid sell pressure and order-book gaps. The result is violent drawdowns: 30–90% drops are common for projects with little product traction or community support.

It is important to consider the interconnection of the crypto market. Price movements of Bitcoin, being the bellwether of Cryptocurrency, will majorly influence other cryptocurrencies, with strongly correlated currencies followed by minor ones.

Bitcoin's Downward Slide

Massive crypto liquidations signal concerns over higher interest rates. Bitcoin's price touching $90,000(its lowest in 2025) started raising concerns in the cryptocurrency market with a decline of about 5.8% . Though some say crypto currency concerns are being overblown, the decline across future markets signifies turbulence for traders who became early indicators of the broader market. Let's discover which cryptocurrencies are most vulnerable.

Ethereum (ETH)

Standing as the second largest followed cryptocurrency after Bitcoin may have a negative result in the market affecting its price and DeFi(Decentralized Finance) projects. ETh has already sunk around 20% of its network value with the current price being $2,480.11 following the announcement.

Binance Coin (BNB)

Binance Coin is associated with the Binance Exchange. This said to be the world's largest exchange has seen a declined value of $556 sinking 15% after the stricter U.S. regulations as they operate internationally on crypto trading platforms with potential sanctions.

Solana (SOL)

Solana is considered a leading blockchain for NFTs and DeFi applications. As per platforms like LisporaSeek, SOL is the first to experience a downturn amid the increase in market risk aversion. With a decrease of 8%, its current price stands at $194. It may also see a reduced investment in the coming days.

Ripple (XRP)

Ripple majorly focuses on revolutionizing cross-border payments. Starting today, this Fintech company has already started facing challenges due to possible disruptions in global trade flows on international transactions. It sank 23% followed by the trading tariffs announcement standing at $2 currently.

 High-leverage altcoins and perpetual-swap markets are the next to watch. Exchanges and derivative desks often see concentrated leverage in thinner altcoin contracts; when Bitcoin moves strongly, the cross-margin and index effects can trigger cascades of liquidations across alt markets. If BTC’s move is sudden, algorithms and stop-loss clusters execute, pushing prices lower and forcing more liquidations — a feedback loop that quickly amplifies losses. This is why tokens with high open interest relative to their market cap (or those that are commonly used as collateral on margin platforms) get hammered even if there’s no fundamental change to the protocol. In other words, it’s not just fundamentals: market plumbing and leverage density matter. Post-rally volatility spikes in altcoins often map directly to where leverage had built up before the move.

These cryptocurrencies saw a major downside, followed by Bitcoin, with many other altcoins following suit. The crypto market often spills over uncertainty, especially in traditional markets, leading investors to pull back their riskier assets. With uncertainty over Trump's administration on the regulatory environment, Cryptocurrencies could further dampen investors with the current dip. For some traders and investors, this may seem like a hedge against inflation and government policies. The crypto market has always been unpredictable yet highly speculative, but for now, it remains highly reactive to geopolitical events. However, Risk takers will find this as an opportunity to potentially create long-term buying opportunities.

Disclaimer:

This article is a paid advertorial and has been published in partnership with the advertiser. The content, views, and opinions expressed herein are solely those of the advertiser and do not necessarily reflect the views of the publication. Readers are advised to exercise their own discretion and due diligence before making any financial or investment decisions. Cryptocurrency investments are subject to market risks.