- BTC price has fallen over 13% since January, with altcoins seeing steeper losses.
- Recent trade tariffs imposed by Trump have triggered market panic.
- Analysts suggest large investors are buying the dip while small traders are being pushed out.
Since the last day of January, Bitcoin has been in a free fall, plummeting over 13% despite earlier optimism about reaching new highs.
Current market conditions indicate a loss of confidence, leading to capitulation, with many altcoins experiencing even steeper declines.
The top three cryptocurrencies by market cap, Bitcoin, Ethereum, and XRP they all have suffered significant losses.
While bulls are attempting to regain control, Bitcoin still shows a decline of 9.5% since the end of January and 2.5% intraday.
As of now, Bitcoin price is trading at $95,380, Ethereum at $2,621, and XRP at $2.41. The bearish sentiment is particularly higher in altcoins, which have seen even greater losses.

This turmoil occurred due to recent tariffs imposed on Canada, Mexico, and China, which have triggered widespread market panic.
As the situation unfolds, there is considerable uncertainty about how the trade tariffs war will develop and how long it might last if tensions escalate.
However, there are discussions pending, with Donald Trump potentially set to engage with affected parties regarding the trade tariffs.
Amid this market bloodbath, analysts hint that while small traders are being removed, whales may be capitalizing on the dip, raising concerns about market manipulation.
Keep reading to know, how will the market and BTC price gonna respond in the coming days?
Explained: What Happened With Crypto Market & Bitcoin Price?
During the pre-election campaign, President Donald Trump made several promises focused on reducing illegal immigration and constraining the flow of drugs into the U.S.
To fulfill these commitments, he imposed trade tariffs, asserting that these measures were essential to stop illegal drugs and immigrants from entering the country.
According to the BBC, Canada and Mexico are facing tariffs of 25% on their exports to the U.S., while Chinese-made goods will incur a 10% levy on top of existing tariffs.
But, in response, unhappy by the new tariffs, Canada and Mexico have indicated they will retaliate with their own trade tariffs. Meanwhile, China has vowed to challenge Trump’s actions at the World Trade Organization.
Moreover, the onset of these heated trade tariffs has sent shockwaves through the entire cryptocurrency market, including BTC price as well as various other financial markets.
The Dow Jones Industrial Average (US 30) fell by 2.8% in reaction to the escalating trade tensions.

Investors are understandably demoralized by the potential for a full-blown trade war, leading to increased anxiety in the markets.
Moreover, the data shows that in the past two days, net inflows to exchanges have risen significantly. This indicates that spooked investors are moving their assets in response to the uncertainty. This shift is contributing to the selling pressure across the board.
Analyst Highlights Market Manipulation in Play with Whales Buying the Dip
Furthermore, in a Quicktake, a CryptoQuant analyst, TraderOasis, recently shared insights indicating that the price is dropping below key accumulation structures.
As per his, Bitcoin analysis it shows that support levels are breaking and triggering panic selling across the market.
Interestingly, he shows that the Coinbase premium index shows no signs of selling; instead, it continues to accumulate.
This suggests that institutional and large investors are not exiting the market but are actively buying during this downturn.

However, he says in the post that a reduction in the number of open positions indicates that forced liquidations are taking place, meaning that leveraged positions are being closed out.
The same is happening in funding rates, which suggests that market participants are increasingly betting on a BTC price decline, contributing to the growing bearish sentiment.
Overall, this situation can be interpreted as small investors being pushed out of the market, while larger players take advantage of the dip to accumulate more assets.
This scenario per the analyst post, demonstrates that it is kind of a classic case of market manipulation, often referred to as a “whales’ accumulation phase.”
The $100K Mark is Critical For Bitcoin Price
Bitcoin has repeatedly breached the $100,000 level but has struggled to maintain its position above it, often retreating to the support range of $91,000 to $90,000. This support level has been tested multiple times; as long as it holds, there’s no immediate concern.
However, if it breaks, a significant decline could follow. Arthur Hayes warned a couple of weeks ago that such a scenario could see BTC price crashing to the $70,000 to $75,000 range.
Adding to the bearish sentiment, Bitcoin has formed a rounding top pattern. However, there’s a possibility that this could evolve into an inverse cup and handle pattern.
If Bitcoin manages to bounce back, it could rise toward $100,000, forming the handle of the pattern.

This scenario carries risks, as a brief rise could serve as a trap for a major downturn, with prices potentially dropping by an amount equal to the depth of the cup.
A successful breach of the $100,000 resistance, followed by a flip to support, would invalidate the bearish outlook.
Such a move could trigger a rally to $105,000, signaling a recovery from recent losses. The market remains on edge, watching closely to see how these patterns unfold.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Varuni has been in the web3 space for half a decade, witnessing the changing dynamics of DLT, Blockchain and Web3. With 8 years of journalistic expertise, she has a keen interest in emerging technology and their impact on society. She has published news and on-chain analysis articles on Nasdaq as well as some of the top web3, crypto news firms. Currently, she heads The Coin Republic as the Editor-In-Chief.