WLFI dumps $50M in Bitcoin: Is Trump’s pro-crypto stance fading?
Market FOMO is hanging by a thread. Actually, one small transfer and we might see a full-blown liquidity unwind. Makes you surprise: What precisely are traders HODLing for proper now with all this volatility?
On the large image aspect, the market’s nonetheless bullish on U.S. President Donald Trump’s pro-crypto strikes. The newest regulatory payments simply add gas, and Trump-backed World Liberty Monetary [WLFI] is a part of that wave.
Nevertheless, the technical image tells a distinct story. With a 17.14% drop to date in 2026, Bitcoin [BTC] has successfully worn out all of its post-election positive factors, retracing under the $63k election open value.
Supply: TradingView (BTC/USDT)
In essence, Bitcoin has erased all of the positive factors since President Trump stepped into the White Home in November 2024. With that in thoughts, it’s truthful to ask: Is all of the “hype” round his pro-crypto insurance policies actually justified?
The broader picture provides extra context. The USD Index has slid 8% because the election, hitting a 2022 low of 97, whereas gold is up roughly 77% over the identical stretch, with inflation nonetheless operating above the Fed’s 2% goal.
That’s the alternative of what the market anticipated pre-election, which makes you query: Is Bitcoin’s hype nonetheless using on President Trump’s insurance policies? And if that confidence begins to fade, might threat property face an even bigger unwind?
WLFI Bitcoin dump assessments confidence in Trump
With conviction underneath stress, timing is every thing.
The logic is easy: Bitcoin retracing again to pre-election ranges is already making traders query President Trump’s pro-crypto momentum. Now, WLFI selling $50 million in BTC solely provides extra gas to that doubt.
The important thing query now could be whether or not this transfer was only a strategic deleveraging, as a result of the affect has been big. Over 500k crypto merchants received liquidated, with whole liquidations hitting $2 billion after the information.
Supply: Coinglass
Even so, confidence in Bitcoin hasn’t returned.
Notably, WLFI’s BTC sell-off got here alongside $434 million in BTC ETF outflows, with six of the top-ranked ETFs all posting outflows. BlackRock’s IBIT BTC ETF, as an example, alone noticed $175 million in web outflows.
Which brings us to the important thing query: Was this sell-off greater than only a deleveraging occasion? With BTC down over 30% since This autumn, HODLers are being compelled to liquidate, and WLFI’s dump appears to suit proper into that pattern.
On prime of that, Bitcoin retracing again to pre-election ranges, the muted affect of rules on threat property, and a bearish macro backdrop are all chipping away at confidence in President Trump’s pro-crypto momentum.
Closing Ideas
- With Bitcoin retracing to pre-election ranges, confidence in President Trump’s pro-crypto momentum is underneath query.
- USD down 8%, gold up 77%, muted regulatory affect, and a bearish macro backdrop are all fueling doubts about Bitcoin’s near-term outlook.
