The price of Ethereum plummeted to $1400, sending shockwaves through the crypto world. This dramatic drop happened after a huge Ethereum sell-off by Donald Trump’s World Liberty Finance. Could this be the reason behind the crash?
Trump’s Firm Dumps Millions in Ethereum
Lookonchain, a blockchain analytics platform, revealed that a wallet linked to World Liberty Finance – Trump’s controversial crypto firm – sold off a massive chunk of its Ethereum holdings. This happened right before the price crashed, raising some serious questions.
World Liberty Finance, launched in 2024, aims to challenge traditional banking and promote stablecoins. According to Lookonchain, the firm previously bought a lot of Ethereum at a lower price, only to sell it off at a significant loss. They dumped 5,471 ETH (around $8 million) at $1465 per coin – far below its previous value of over $1600.
This move surprised many. World Liberty Finance had previously been accumulating Ethereum, so this sudden sell-off is a big change in strategy. They originally spent around $210 million to acquire 67,498 ETH. Now, with the sell-off, they’re sitting on an unrealized loss of roughly $125 million.
Ethereum’s Freefall and Uncertain Future
The Ethereum price drop to $1400 was a seven-year low, impacting other major cryptocurrencies like Bitcoin as well. While Ethereum has since recovered slightly (trading around $1591 at the time of writing), it’s still down significantly over the past month. Many analysts remain pessimistic about Ethereum’s short-term future. The overall sentiment is still bearish, suggesting further price drops might be on the way.
The Mystery Remains
Why did World Liberty Finance sell off its Ethereum? Nobody knows for sure. Some speculate it was a reaction to the falling price, while others think it might signal a market bottom. Whatever the reason, it certainly added to the uncertainty surrounding Ethereum’s future.
