Market FOMO is hanging by a thread. Literally, one small move and we could see a full-blown liquidity unwind. Makes you wonder: What exactly are investors HODLing for right now with all this volatility?
On the big picture side, the market’s still bullish on U.S. President Donald Trump’s pro-crypto moves. The latest regulatory bills just add fuel, and Trump-backed World Liberty Financial [WLFI] is part of that wave.
However, the technical picture tells a different story. With a 17.14% drop so far in 2026, Bitcoin [BTC] has effectively wiped out all of its post-election gains, retracing below the $63k election open price.
Source: TradingView (BTC/USDT)
In essence, Bitcoin has erased all the gains since President Trump stepped into the White House in November 2024. With that in mind, it’s fair to ask: Is all the “hype” around his pro-crypto policies really justified?
The broader picture adds more context. The USD Index has slid 8% since the election, hitting a 2022 low of 97, while gold is up roughly 77% over the same stretch, with inflation still running above the Fed’s 2% target.
That’s the opposite of what the market expected pre-election, which makes you question: Is Bitcoin’s hype still riding on President Trump’s policies? And if that confidence starts to fade, could risk assets face a bigger unwind?
WLFI Bitcoin dump tests confidence in Trump
With conviction under pressure, timing is everything.
The logic is simple: Bitcoin retracing back to pre-election levels is already making investors question President Trump’s pro-crypto momentum. Now, WLFI selling $50 million in BTC only adds more fuel to that doubt.
The key question now is whether this move was just a strategic deleveraging, because the impact has been huge. Over 500k crypto traders got liquidated, with total liquidations hitting $2 billion after the news.
Source: Coinglass
Even so, confidence in Bitcoin hasn’t returned.
Notably, WLFI’s BTC sell-off came alongside $434 million in BTC ETF outflows, with six of the top-ranked ETFs all posting outflows. BlackRock’s IBIT BTC ETF, for instance, alone saw $175 million in net outflows.
Which brings us to the key question: Was this sell-off more than just a deleveraging event? With BTC down over 30% since Q4, HODLers are being forced to liquidate, and WLFI’s dump seems to fit right into that trend.
On top of that, Bitcoin retracing back to pre-election levels, the muted impact of regulations on risk assets, and a bearish macro backdrop are all chipping away at confidence in President Trump’s pro-crypto momentum.
Final Thoughts
- With Bitcoin retracing to pre-election levels, confidence in President Trump’s pro-crypto momentum is under question.
- USD down 8%, gold up 77%, muted regulatory impact, and a bearish macro backdrop are all fueling doubts about Bitcoin’s near-term outlook.
