Trump-Linked Firm Slashes Stake in Crypto Giant – Is a Massive Sell-Off Looming?
Political ties meet crypto volatility as a Trump-connected company dumps shares in a major blockchain player. Market watchers brace for ripple effects.
Behind the sell-off: A calculated exit or panic move? While the firm trims its position, traders debate whether this signals a loss of confidence or just portfolio rebalancing—because nothing says 'stable investment' like mixing politics and crypto.
The big question: Will this trigger a domino effect? With institutional players increasingly involved in digital assets, one high-profile divestment could spark copycat behavior. After all, when the whales move, the minnows scatter.
Silver lining for crypto bulls? Every sell-off creates buying opportunities. As one veteran trader quipped, 'In crypto, even the exits are entrance ramps.' Just maybe don't mention that to the bagholders.
Donald Trump Takes Money Off the Table
The report claims that while the US President is not directly involved in these transactions, there is someone with a strong connection to the Oval Office operating in his behalf. Several reports claimed that Trump and his family have already made millions of dollars from their crypto investments.
WLF has been one of the most lucrative ventures for the Trump family. Announced in September last year, the company contributed $30 million to the Trump treasury, Forbes claims.
In addition, a separate report claims that Barron Trump, Donald Trump’s youngest son, has made over $40 million for his participation in World Liberty Financial. With the help of his older brothers, Don Jr. and Eric, Barron worked as a promoter and a ‘Web3 Ambassador’ for the company and a co-founder.
The company netted $200 million for the Trump family in January. Following this performance, the company experienced a series of changes in its business structure, including a reduction in the Trump’s family participation from 75% to 60% to the now reported 40%.
In that sense, the Trumps seem to be reducing their stake progressively. Neither the Trumps or representatives for World Liberty Financial have commented on the reasons behind the sales.
However, the report speculates that due to the performance in the company and its success, the Trumps might be taking a profit while the bullish momentum rises.
Many experts have been critical to these behavior from Trump and his closest family openly calling corruption. Expert on political history for the University of Princeton, Julian Zelizer, stated the following:
To me, Trump’s crypto dealings seem pretty explicit. Policy decisions are being made regarding parts of the financial industry that are being done not to benefit the nation, but his own financial interests … It’s hard to imagine what he’s doing benefits the nation.
At the time of writing, the crypto market is undergoing a sell off. The top cryptocurrencies by market cap Bitcoin and Ethereum record between 3% and 10% losses over the past week.
The sector is potentially heading for a sluggish summer. Per the trading firm QCP Capital, several factors on the macroeconomic scene and seasonality will push the Bitcoin price and the altcoin market into a prolonged low volatility environment.
Mainly, the Trumps and other institutional investors might be pulling away for the summer leaving the crypto market in a cautious stalemate. QCP stated:
Summer sluggishness has set in for crypto. BTC implied volatility is back below 40%, erasing its recent spike. Risk reversals are still negative, suggesting cautious sentiment.
Cover image from ChatGPT, TRUMP/USDT chart from Tradingview
