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

The cryptocurrency market experienced a sharp downturn on Monday as a wave of forced selling triggered a market-wide plunge. A total of over $2.2 billion in crypto was liquidated, impacting major digital assets like Bitcoin and Ethereum.

As a result of the sell-off, top altcoins also plunged by varying percentages, with some losing up to 30% of their value within 24 hours. Among the altcoins that faced significant losses was the TRUMP memecoin, which saw a steep decline from highs above $70 since Donald Trump took office. At press time, the memecoin trades at about $17.99 with a weekly loss of around 35%, according to CoinGecko.

Institutions like market-maker Wintermute are being eyed for their role in the sell-off, with traders speculating on their involvement in the sell-off. The company, which holds about $634.7 million in digital assets, is seen moving large amounts of crypto as part of the sell-off pressure. According to crypto analyst Midas (@DeFiMidas), Binance may be working with Wintermute to trigger further capitulation.

“Institutions are selling crypto hard. Market-maker Wintermute, which had about $634.7 million in digital assets, moved large amounts of crypto in the past day,” Midas said, adding that Binance might be working with the market-maker to trigger further capitulation.

According to reports, Binance transferred sums to Wintermute, which handled a trading volume of $14.94 billion in the past month. This aligns with claims that the crypto exchange is using Wintermute's market influence to force liquidations and price manipulation.

Meanwhile, PumpFun, a cryptocurrency trading platform that specializes in memecoins, is being sued by investors over allegations that it enabled pump-and-dump schemes, manipulated liquidity and violated securities laws.

The lawsuit alleges that PumpFun worked with crypto influencers to alter prices, engaged in deceptive promotions and failed to disclose risks to investors. According to the claims, investors are seeking refunds and damages compensation.

If the case advances, it may lead to broader implications for the memecoin market. Exchanges could delist PumpFun-affiliated tokens and there might be increased regulatory scrutiny. There is also speculation that the lawsuit might lead to the classification of all memecoins as securities, which could force many projects to shut down.

The recent crypto market crash, which saw billions wiped out in liquidations and sharp drops in digital asset prices, has left traders speculating on what caused the sell-off and what might happen next.

The severity of the crash has drawn comparisons to the market collapse during the COVID-era, with some viewing this as a temporary shakeout and others warning 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 are urging caution as the combination of liquidation-driven sell-offs, institutional maneuvers and regulatory crackdowns suggests that volatility will persist.

“Keep watching market movements closely. Further downside is still possible,” Midas advised.