- TRUMP and WLFI tokens fell sharply, dropping 14.6% and 10.8% in the past day.
- The decline follows a Democrat-led investigation into a business deal between World Liberty Financial and a UAE royal.
- The wider crypto market also slumped, with total capitalization down 2.8% to $2.37 trillion.
- TRUMP is down 95% from its all-time high set in January 2023.
Major Trump-linked cryptocurrencies suffered significant losses this week as a Congressional probe into a foreign business deal rattled investors. This news intensified an already steep market-wide selloff driven by waning institutional sentiment.
Official Trump (TRUMP) fell 14.6% to $3.41, while World Liberty Financial’s (WLFI) governance token dropped 10.8% to $0.111. Consequently, TRUMP now trades 95% below its January 2023 peak, per CoinGecko data.
Representative Ro Khanna (D-CA) launched the investigation into “how conflicts of interest may be influencing U.S. government policies.” His letter to World Liberty Financial requests details on a $500 million deal with UAE royal Sheikh Tahnoon bin Zayed Al Nahyan before Trump’s 2016 inauguration.
The investigation follows a Wall Street Journal report stating the investment preceded a deal sending 500,000 advanced AI chips to the UAE. The Journal notes the Biden administration had blocked similar deals over links to Huawei.
Analysts attribute the broader crypto plunge to institutional risk-off sentiment. EToro‘s Simon Peters cited “geopolitical tensions” and disappointing earnings forecasts as catalysts. “Recent geopolitical tensions, macroeconomic uncertainty, disappointing earnings forecasts and the threat of quantum computing is causing institutional investors to rethink tech valuations and their exposure to crypto,” Peters told Decrypt.
The market slump triggered significant outflows from spot Bitcoin ETFs, increasing selling pressure. However, Peters noted Bitcoin is nearing its 200-week moving average, a level that has historically provided strong support after major corrections.
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