Bitcoin (BTC) Price Dumped Heavily as World Liberty Financial (WLF), a Fund Linked to U.S. President Donald Trump, Accumulates Ethereum

The crypto market has recently witnessed significant volatility, particularly with Bitcoin (BTC) experiencing a sharp dump. Meanwhile, global economic and political factors, along with World Liberty Financial (WLF), a fund linked to U.S. President Donald Trump, accumulating Ethereum, are drawing the attention of investors.

Cryptocurrency markets have seen significant volatility in recent times, with Bitcoin (BTC) price dropping sharply while a fund linked to U.S. President Donald Trump is accumulating Ethereum.

As reported by Bloomberg, Bitcoin price went down to approximately $85K on Monday, marking a 21,1% decrease compared to its all-time-high $109,114 hit in January.

On-chain data from Arkham Intelligence reveals a large movement of Bitcoin, potentially tied to sell-offs or distribution from major wallets.

FIDELITY SOLD

ARK SOLD

GRAYSCALE SOLD

BUT BLACKROCK… ALSO SOLD $150M $BTC pic.twitter.com/Zfn4W2iIhk

— Arkham (@arkham) February 26, 2025

When a large amount of BTC is moved from cold storage to exchanges, the market typically interprets it as a signal of impending sales.

Increased selling pressure can cause BTC’s price to drop rapidly, especially amid a market already sensitive to macroeconomic news.

This decline occurred in late October 2024, coinciding with investor concerns over potential economic policy shifts from the U.S.

A key factor possibly contributing to BTC’s dump is news surrounding Donald Trump’s tariff policies.

According to CNBC, President Trump has repeatedly expressed intentions to impose 25% tariffs on goods from the European Union (EU) to protect the domestic economy. If implemented, this policy could escalate global trade tensions.

When trade wars become a concern, investors often reduce their risk appetite. Although Bitcoin is considered “digital gold,” it frequently experiences short-term negative impacts during periods of instability in traditional financial markets.

Uncertainty about the global economic fallout from these tariffs may have prompted some investors to sell BTC and shift to safer assets like government bonds or physical gold, adding downward pressure on its price.

In a contrasting trend, a fund linked to Trump continues accumulating Ethereum.

World Liberty Financial (WLFI), a DeFi project backed by the Trump family, has been accumulating a substantial amount of ETH recently. By early 2025, Arkham data shows WLFI holding roughly $4.64 million in ETH, and up to 2K ETH in the last 7 days.

ETH has been in a prolonged “stagnant” phase, unable to break its ATH from 2021 (around $4,800). However, WLF’s ETH accumulation is sparking speculation that it could signal a new rally.

Some analysts suggest that Trump’s association with WLF, combined with his campaign promises of crypto-friendly policies as mentioned by The Guardian, might provide a boost for ETH.

If WLF continues buying and the market responds positively, ETH could break through resistance levels and aim for $4,000–$4,500 in the near future.