The recent downturn in the crypto market, which saw total valuations fall from a record high of nearly $4.3 trillion to below $3 trillion, has severely affected many investors.
Among those affected is the Trump family, whose wealth has reportedly declined by $1 billion in the past month. according to to Bloomberg. Their current net worth is now about $6.7 billion, up from $7.7 billion in September.
The Trump family’s crypto portfolio is taking big hits
The family’s crypto portfolio has suffered significant losses due to recent market conditions, including President Trump’s official memecoin, TRUMP, Eric Trump’s. Bitcoin (BTC) mining company, American Bitcoin (ABTC) and Truth Social – all of which are Bitcoin related.
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One of the hardest hit entities is Trump Media & Technology Group (TMTG), the parent company of Truth Social. Last week, the company’s shares fell to a record low, resulting in an estimated $800 million drop in Trump’s stake since September.
The company has invested heavily in Bitcoin, spending around $2 billion on digital assets. The supply of approximately 11,500 BTC, purchased when the Bitcoin price was hovering around $115,000, now represents a significant decline of approximately 25%.
In addition, World freedom financial (WLFI), considered the Trump family’s main crypto operation, has seen its value decline rapidly. WLFI, which once traded at $0.26, has now fallen to around $0.15 at the time of writing. At its peak, the token’s total valuation was around $6 billion, but now it is worth just over $4 billion.
Despite the difficulties, a spokesperson for World Liberty Financial expressed optimism, stating that “Crypto is here to stay.” The spokesperson highlighted a long-term commitment to the technologies that underpin digital assets, suggesting that these innovations could transform financial services.
Eric Trump remains optimistic
After returning to office in January, President Trump’s sons, Eric Trump and Donald Trump Jr., also began working with Cabin 8 Corpa crypto company that provides Bitcoin mining equipment.
In return, they acquired a controlling stake in a newly formed organization called American Bitcoin Corp. Eric Trump reportedly owns about 7.5% of this new company.
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However, Hut 8’s shares, which trade on the Nasdaq, have fallen by almost half, wiping more than $300 million from Eric Trump’s wealth since September, while the shares were previously valued at $9.31.
Amid these financial challenges, Eric Trump exuded a sense of optimism, indicating that recent developments have market declines can offer “a great buying opportunity.” He emphasized that those who make purchases during recessions and embrace market volatility are likely to be the long-term winners in the cryptocurrency landscape.
Currently, the market’s top cryptocurrency has seen a 1.5% recovery towards $88,430 on Monday after hitting an eight-month low of $80,000 last Friday. This positions BTC nearly 30% below the all-time high of $126,000 reached in October.
Featured image of DALL-E, chart from TradingView.com