WLF Buys $112.8M in Crypto as $1.28B Outflows Surge Amid Donald Trump’s Silence on Crypto
The cryptocurrency market experienced a tumultuous 24 hours marked by sharp sell-offs and widespread liquidations across major altcoins. Bitcoin demonstrated relative resilience compared to its peers, including Solana and Cardano, as traders grappled with heightened volatility.
According to data from Coinglass, over 386,000 traders were liquidated in the past day, with total liquidations amounting to approximately $1.28 billion. Long positions accounted for $816 million, while $307 million came from short liquidations, reflecting a significant shift in market sentiment as prices swung sharply.
Bitcoin, which recently reached a high of $109,000 on Sunday, was trading near $103,500 at press time, showing a modest 2.2% decline over the past 24 hours. This relatively stable performance stands out amidst a broader market downturn. In contrast, altcoins bore the brunt of the sell-off. Solana dropped more than 9% in a single day, while Cardano fell over 5%, as risk-averse traders moved capital toward stablecoins.
FXTM Senior Market Analyst Lukman Otunuga commented on the situation, saying, “Bitcoin’s sensitivity to U.S. economic data and Federal Reserve rate expectations means traders should prepare for continued volatility in the coming days.” Similarly, analysts at QCP Capital noted mixed signals in the market. While elevated funding rates on derivatives platforms such as Deribit suggest underlying optimism, the market appears to be consolidating after its recent rally.
Speculation Over U.S. Bitcoin Strategic Reserve Gains Attention
Amid the market turbulence, speculation surrounding the potential creation of a U.S. Bitcoin Strategic Reserve (SBR) has captured attention. According to Polymarket, there is a 38% chance of President Donald Trump signing an executive order to establish such a reserve within his first 100 days in office.
An SBR would involve the U.S. government acquiring and holding bitcoin as a strategic asset, akin to gold reserves. However, experts caution that implementing such a policy would require careful planning, regulatory collaboration, and alignment with the Federal Reserve. Gracy Chen, CEO of Bitget, remarked, “Establishing a bitcoin strategic reserve within the first 100 days remains largely speculative. A policy of this magnitude demands thorough preparation and support from key regulatory stakeholders.”
World Liberty Financial Expands Crypto Holdings
Meanwhile, World Liberty Financial (WLFI), a decentralized finance project associated with President Trump, has expanded its cryptocurrency holdings. On his first day in office, the project announced it had acquired $112.8 million worth of digital assets to mark the inauguration.
The purchases included $47 million each in Ether and Wrapped Bitcoin, along with $4.7 million in Aave, Chainlink, Tron, and ENA tokens. This diversification follows the project’s sale of 20% of its WLFI token supply, which has raised $300 million since October 2024, according to Dune Analytics.
With the latest acquisitions, World Liberty now holds approximately $185.14 million in Ether, accounting for more than half its portfolio value, alongside $54 million in USDC, $46.5 million in Wrapped Bitcoin, and other tokens.
Tron DAO has also deepened its involvement with WLFI. Founder Justin Sun confirmed an additional $45 million investment, bringing Tron’s total stake to $75 million. Sun, who became an advisor to WLFI in late 2024, highlighted the project’s growing influence in the crypto space.
As market volatility persists, the crypto industry continues to navigate significant developments, from ambitious governmental initiatives to high-stakes investment moves by key players.
