Whales Offload as $TRUMP Is ‘Dying’ – Analyst Explains Why the Crypto Market Crashed and What Comes Next
The cryptocurrency market faced a severe downturn as major liquidations wiped out billions in value. A wave of forced selling triggered a market-wide plunge, with Bitcoin dropping below key levels and Ethereum shedding a portion of its value.
The sell-off extended to altcoins, exacerbating losses across the board. Analysts attribute the crash to large-scale liquidations, coordinated sell pressure, and growing regulatory concerns.
According to crypto analyst Midas (@DeFiMidas), the total liquidations exceeded $2.2 billion, making it one of the most major wipeouts in recent history. The steep decline saw Bitcoin fall to $91,000, while Ethereum lost 20% of its value within 24 hours.
2025 Altseason is CANCELLED, welcome Black Swan
— Midas (@DeFiMidas) February 4, 2025
Over $2 Billions liquidated – this is just the beginning
Wintermute is selling, $TRUMP is dying, PumpFun got sued
Here is a full breakdown and what will happen next🧵👇 pic.twitter.com/fuz9TV5jgl
The sudden market drop also caused top altcoins to plunge between 15% and 30%, leading to heightened volatility and fear. Since Donald Trump took office, the TRUMP memecoin has been declining in value from highs above $70. At press time, the memecoin trades at about $17.99 with a weekly loss of around 35%, according to CoinGecko.
What you'll learn 👉
Wintermute’s Role in the Sell-Off
The market turmoil has raised suspicions about institutional involvement. Market-making firm Wintermute is under scrutiny as traders speculate on its role in the sell-off.
The company, which holds approximately $634.7 million in digital assets, has allegedly been moving large amounts of crypto, contributing to the downward pressure. Midas suggests that Binance may be working with Wintermute to trigger further capitulation.
Reports indicate that Binance transferred sums to Wintermute, with the latter handling a trading volume of $14.94 billion in the past month. This aligns with claims that the crypto exchange is leveraging Wintermute’s market influence to force liquidations and manipulate prices.
PumpFun Lawsuit and Potential Fallout
PumpFun, a cryptocurrency trading platform specializing in memecoins, is encountering legal issues due to allegations of enabling pump-and-dump schemes, manipulating liquidity, and violating securities laws.
Accusations involve working with influencers to alter prices, deceptive promotions, and not revealing risks to investors. The lawsuit states that investors are seeking refunds and damages compensation.
Should the case advance, it may result in wider consequences for the memecoin market. Exchanges may delist PumpFun-affiliated tokens, and stricter regulatory oversight could follow. There is also speculation that the lawsuit might prompt the classification of all memecoins as securities, potentially forcing many projects to shut down.
Read also: Whale Activity Could Signal a Lido DAO (LDO) Price Surge – Here’s What to Watch
What Comes Next for the Crypto Market?
The severity of the recent crash has drawn comparisons to the COVID-era market collapse. While some view this as a temporary shakeout, others warn that it may signal a prolonged downtrend. The coming days will be critical in determining whether this was a short-term capitulation event or the beginning of a larger market correction.
For now, analysts urge caution. The combination of liquidation-driven sell-offs, institutional maneuvers, and regulatory crackdowns suggests that volatility will persist. Midas advised to watch market movements closely, as further downside remains a possibility.
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