A sudden market downturn, particularly in the cryptocurrency space, can often be attributed to a "whale trap." This term refers to a strategy used by large investors, or whales, who have the power to manipulate the market by making significant moves. It typically works as follows:

1. A whale initiates a large sell-off, leading to panic among retail investors who see the price drop and begin selling their assets as well.

2. As more investors engage in selling, the price continues to fall, creating a cascading effect.

3. Once the price has dropped enough, the whale starts buying back at the lower prices, increasing their holdings and triggering a market recovery.

This manipulation tactic is designed to shake out weaker hands and allow the whale to accumulate more assets at a lower price. It's common in highly volatile and less regulated markets like cryptocurrencies.

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