The crypto market has witnessed a lot of volatility recently, especially Bitcoin (BTC) has experienced a sharp dump. Meanwhile, funds related to U.S. President Donald Trump, funds that accumulate Ethereum, global economic and political factors, and World Free Finance (WLF) are attracting investors’ attention.
In this article, we will break down each aspect to better understand the current situation.
Why does Bitcoin dump in large quantities?
Recently, BTC’s price has dropped to about $85,000, down 21,1% from its highest ever $109,114 in January.
Source: Coingecko
According to Arkham Intelligence, the chain data shows that Bitcoin’s movement may be related to short selling or allocation from major wallets. This is not uncommon in the crypto market, where actions by several crypto asset managers (including Grayscale, Fidelity and BlackRock) often trigger large price volatility.
Sold faithfully
The ark sold
Grayscale for saleBut BlackRock… also sold $150 million. $ btc pic.twitter.com/zfn4w2iihk
-Arkham (@arkham) February 26, 2025
Specifically, when a large amount of BTC is transferred from refrigeration to exchange, the market often interprets it as a signal of upcoming sales. Increased sales pressure could lead to rapid declines in BTC prices, especially in markets that are already sensitive to macroeconomic news. This decline occurred in late October 2024, consistent with investors’ concerns about the potential shift in economic policy from the United States, and we will explore this next.
Background of Trump’s tax on the EU
News surrounding Donald Trump’s tariff policy could be a key factor in BTC dumps. According to CNBC, President Trump repeatedly expressed his intention to impose a 25% tariff on EU (EU) goods to protect the domestic economy. If implemented, the policy could escalate global trade tensions.
When a trade war becomes a problem, investors often reduce their risk appetite. Although Bitcoin is considered “digital gold”, it often experiences short-term negative impacts during periods of instability in traditional financial markets. The uncertainty of the global economic impact of these tariffs could prompt some investors to sell BTC and transfer to safer assets, such as government bonds or physical gold, increasing pressure on their price decline.
World Free Financial Accumulation ETH
Despite BTC’s dive, there has been a contrasting trend in Ethereum. World Free Finance (WLFI), a DEFI project backed by the Trump family, has accumulated a lot of ETH recently. By early 2025, Arkham data showed WLFI’s ETH was about $4.64 million, holding up to 2K ETH in the past seven days.
Source: Arkham
ETH is in an extended “stagnation” phase and cannot break its ATH (approximately $4,800) from 2021. However, WLF’s ETH accumulation has sparked speculation that it may send out new gatherings. Some analysts believe Trump’s connection to the WLF, coupled with his campaign commitments, as mentioned by The Guardian, to crypto-friendly policies, may provide a driving force for ETH. If WLF continues to buy and the market responds positively, ETH may break through the resistance level and reach $4,000 in the near future at $4,000 to $4,500.
