Market FOMO is hanging by a thread. Literally, one small move and we could see complete liquidity disappear. It makes you wonder: What exactly are investors looking for right now with all this volatility?
In terms of the big picture, the market is still optimistic about US President Donald Trump’s pro-crypto moves. The latest regulatory bills only add fuel to Trump-backed World Liberty Financial [WLFI] is part of that wave.
However, the technical picture tells a different story. Down 17.14% so far in 2026, Bitcoin [BTC] has essentially wiped out all its post-election gains, falling below the election’s opening price of $63,000.
Source: TradingView (BTC/USDT)
Essentially, Bitcoin has erased all gains since President Trump entered the White House in November 2024. With that in mind, it’s fair to ask: is the ‘hype’ surrounding his pro-crypto policies really justified?
The broader picture adds more context. The USD index has fallen 8% since the election, reaching a low of 97 in 2022, while gold has risen about 77% over the same period. inflation is still above the Fed’s 2% target.
That’s the opposite of what the market expected ahead of the election, which makes you wonder: Does Bitcoin’s hype still depend on President Trump’s policies? And if that confidence starts to fade, could risky investments face a bigger decline?
WLFI Bitcoin Dump Tests Trust in Trump
When belief is under pressure, timing is everything.
The logic is simple: Bitcoin’s return to pre-election levels is already causing investors to question President Trump’s pro-crypto momentum. Now WLFI selling $50 million worth of BTC only adds more fuel to that doubt.
The main question now is whether this move was just a strategic deleveraging, because the impact has been enormous. More than 500,000 crypto traders were liquidated, totaling $2 billion following the news.
Source: Coinglass
Yet confidence in Bitcoin has not returned.
Notably, WLFI’s BTC selloff amounted to $434 million BTC ETF outflowswith six of the top-ranked ETFs all posting outflows. For example, BlackRock’s IBIT BTC ETF alone saw $175 million in net outflows.
Which brings us to the key question: was this sell-off more than just a debt reduction? With BTC down over 30% since the fourth quarter, HODLers are being forced to liquidate, and WLFI’s dump seems to fit right into that trend.
Furthermore, Bitcoin’s return to pre-election levels, muted regulatory impact on risk assets, and a bearish macro environment undermine confidence in President Trump’s pro-crypto momentum.
Final thoughts
- With Bitcoin returning to pre-election levels, confidence in President Trump’s pro-crypto momentum is in question.
- The USD fell 8%, gold rose 77%, the muted regulatory impact and a bearish macro environment all cast doubt on Bitcoin’s short-term prospects.