The crypto market crashed hard this morning. This begs the question, is this the end or only the beginning of this final leg up for this bull run? A lot happened over the weekend that influenced today’s crash. The crypto market saw $2.15 billion in liquidations. That’s more than during the FTX and $LUNA crashes.
President Trump implemented new tariff taxes for imported goods. He hit Canada, Mexico, and China with this. As a result, the crypto market lost $12.7 billion in market cap PER HOUR since this trade war started. That was Friday afternoon. That’s a total of $760 billion during the last 60 hours. So, is this bull run over or just getting started?
3 Events That Led to the Crash
Let’s take a look at three events that played a role in this crypto crash.
1. Deepseek
It all started with Deepseek. That saw the stock market crash hard. However, the effect on the crypto market wasn’t as bad as with the stock market. NVIDIA’s stock even crashed by 17% or almost $600 billion. This marked the greatest single-day market-cap loss in a day in US history. In crypto, the AI sector took a hit.
THE MADNESS CONTINUES. NVIDIA LOST ALMOST $600 BILLION IN MARKET CAPITALIZATION IN JUST ONE DAY…RECORD FOR THE #US STOCK MARKET
pic.twitter.com/s0PZwnVbAT
— Giannis Andreou (@gandreou007) January 27, 2025
2. Market Manipulation by CEXes and Market Makers
Marty Party’s X account has been following some major CEXes recently. He pointed out that they manipulate the market with market makers. On his timeline, he backs this up with proof of onchain transactions.
For example, he shows that Binance sent $100 million to Wintermute. In turn, Wintermute sells this on Binance, to force capitulation. Afterward, Binance buys back at a lower price. Here’s another great example of how Binance and Wintermute played this with game with $SOL.
MM Update: #Binance flush $SOL to the low range using artificial volatility – over $30m $SOL sent to Market Maker #Wintermute on Solana to flush the lower range on low volume weekend and clear long standing Long Leverage traders. #Coinbase have sent $30m in Stable Coin to… pic.twitter.com/NRRBB4dZf1
— MartyParty (@martypartymusic) February 1, 2025
And don’t be mistaken, it’s not only Binance, other big exchanges like Coinbase play the same game. These are only some of the samples he provides. You can find more samples like this on his timeline.
In the end, this is as good of a fire sale as they come. And yes, I understand that you’re tired of hearing this by now. Make sure to not get shaken out now. Only buy spot, don’t use leverage now. In a moment, I will discuss good projects to buy during this dip. So, keep watching until the end.
3. Trump’s Tariffs War
Another big reason for this crash is the tariff war that President Trump started. He imposed a 25% tariff on Canada and Mexico and a 10% tariff on China. On a high level, you can compare these tariffs to tax. For example, if last week something cost $100, now, with the new tariff, it costs $125. These tariffs will start tomorrow and affect around 43% of all US imports soon.
The trade war is LIVE:
New tariffs from President Trump are set to impact $1.3 TRILLION worth of US trade.
The US stock market has lost over -$1.5 TRILLION of market cap with ~43% of all US imports soon subject to tariffs.
What does this mean? Let us explain.
(a thread) pic.twitter.com/apmTS5OVCP
— The Kobeissi Letter (@KobeissiLetter) February 3, 2025
40% of all US imports are from Canada, Mexico, and China. So, these goods will now cost 25% more. This includes, for instance, $80 billion in auto industry imports per year. The new tariff will add around $3,000 to the price of a new car in the US. Currently, the US sells 16 million cars per year.
Crude oil from Canada ($97 billion p/y) and phones from China ($55 million p/y) are also impacted. On the other hand, it strengthened the US dollar. That’s because there’s now less demand for foreign currencies.
Trump has a bit of an edge. Let me show you. The US imports 14% from Canada and 15% from Mexico. However, both countries import around 80% from the US. Canada also raised its tariff with the US to 25%. This didn’t prevent the Canadian dollar from dumping.
These tariffs will have huge implications on Canada and Mexico in particular.
Imports from Canada and Mexico only reflect ~14% and 15% of US imports, respectively.
On the other hand, they reflect nearly 80% of exports from both Canada and Mexico.
Trade is clearly lopsided. pic.twitter.com/Gulh9kguaP
— The Kobeissi Letter (@KobeissiLetter) February 3, 2025
China and Mexico are planning countermeasures; however, no details are available yet. Nonetheless, China seemed prepared for this trade war. Only 15% of their annual exports are to the US.
Will the End of the Chinese New Year Celebrations Bring In the Pump?
Chinese New Year is in full swing. Last week, we celebrated the Year of the Snake. It ends with the Lantern Festival. This will be on 12th February. It’s also the largest human migration on Earth. Each year, around 2 billion people travel during this period.
In general, this is a good time to buy Bitcoin. That’s because Chinese people travel back to their small villages and towns. They talk about Bitcoin to their relatives and close friends.
As a result, more people start buying it. But keep in mind that during the travel period, Chinese people don’t trade as much. This could start again coming 12th February. This may ignite the bull run again.
Top 6 Picks to Buy During This Dip
Good coins to buy now before the bull run continues are ‘Made in USA‘ coins. Five out of these six coins are a sample of that.
- Solana ($SOL) — With the $TRUMP and $MELANIA memecoins, Solana was back on the map again with a new ATH.
- Sui Network ($SUI) — Sui has lots of things going on. For example, the Phantom integration. This Solana wallet has 15 million monthly users. You can also send $SUI now via SMS.
How to activate Sui (beta):
Step 1: Open Phantom
Step 2: Go to ‘Settings’
Step 3: Select ‘Active Networks’
Step 4: Toggle Sui on
→ 
pic.twitter.com/BHhyoRy5cp— Phantom (@phantom) January 29, 2025
- Ripple ($XRP) — $XRP is a prime candidate for a possible Strategic Crypto Reserve. Trump mentioned such a reserve earlier. The call for $XRP ETFs also gets stronger.
- Hedera ($HBAR) — It’s a top 20 US made project measured by market cap. Its cores high on experts lists for such a Strategic Crypto Reserve.
- Ondo Finance ($ONDO) — Despite a massive token unlock, the price didn’t dump. It’s one of the top players in the hot RWA sector.
- Hyperliquid ($HYPE) — It’s the only non-US made pick. It was one of the few tokens that held its ground during this dip.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
Copyright Altcoin Buzz Pte Ltd.
The post CAUTION: Crypto Bull Run over OR Market Manipulation? appeared first on Altcoin Buzz.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.