Trump-linked tokens lead crypto losses after Democrats sweep in the US midterms
The official Trump and World Liberty Financial tokens were the two biggest losers among the top 100 cryptocurrencies on Wednesday even as Bitcoin and Ether rallied.
Two crypto tokens tied to US President Donald Trump suffered steep losses following the Democratic sweep in the US midterm elections, prompting concerns about their future amid the broader market recovery. The official Trump (TRUMP) token fell 17% to $1.33, while World Liberty Financial (WLFI) declined over 7% to $0.047. Analysts suggest that political sentiment alone may not sustain demand for Trump-linked tokens, as the broader crypto market rallied over 3.4% to $2.69 trillion.
Other Trump-associated tokens, such as MELANIA and JD Vance (VANCE), also experienced declines. The sector's total market capitalization fell more than 16% to $477 million, with trading volume surging 123% to $437 million. Experts note that while Bitcoin and other established assets respond to a mix of liquidity, institutional investment, and macroeconomic factors, politically linked tokens may be more susceptible to shifts in political expectations.
The election results could introduce regulatory uncertainty, potentially impacting the future of US crypto legislation like the stalled Digital Asset Market Clarity Act.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
