The magnetic field exerts a force on each segment of the current-carrying loop. Due to the interaction between the magnetic field and the current, the magnetic forces tend to pull the loop inward, reducing its area. This tendency to shrink can be explained by the Lorentz force acting on the current elements, which generates a net torque compressing the loop.
Thus, the loop tends to:
\[
\boxed{\text{shrink}}.
\]