Ethereum Price Dump: Is Donald Trumps World Liberty Finance Behind The Crash To $1,400?

The Ethereum price crash to $1,400 has shaken the crypto market, amplifying already volatile conditions. This dramatic price drop comes after a major ETH sell-off by US President Donald Trumps World Liberty Finance, suggesting that the recent dump may have been a primary catalyst behind ETHs price collapse.

Blockchain analytics platform Lookonchain revealed on April 9 via X (formerly Twitter) that the wallet associated with World Liberty Finance, a decentralized finance protocol linked to Trump, recently dumped a significant amount of Ethereum. Interestingly, this sell-off came just before Ethereums price crash, raising the question of whether it contributed to the unexpected decline.

Donald Trumps World Liberty Finance Dumps ETH

Launched in 2024, World Liberty Finance is Trumps controversial digital asset firm designed to rival centralized banking and facilitate the adoption of stablecoins. According to data from Lookonchain, Trumps World Liberty Finance, which was previously accumulating Ethereum at a low price, is now selling off a large chunk of its holding at a steep loss.

Lookonchain flagged the transaction, noting that the wallet linked to World Liberty Finance had offloaded 5,471 ETH tokens worth roughly $8.01 million. The sell-off was executed at a price of $1,465 per ETH, a significant drop from its previous value of over $1,600.

Notably, World Liberty Finances ETH sell-off move has raised eyebrows across the crypto community. It appears to mark a shift in strategy for a player who was previously known for large-scale ETH accumulation.

According to Lookonchain, the wallet address linked to World Liberty Finance had accumulated a total of 67,498 ETH at an average price of $3,259. This means that the decentralized finance protocol spent a total of $210 million to amass such a large amount of ETH.

At its sell-off price, this leaves the entity sitting on a staggering unrealized loss of around $125 million. The recent sell-off also adds more fuel to the growing uncertainty surrounding Ethereums future outlook, as the cryptocurrencys recent price crash has sparked even more bearish predictions of continued decline.

Although the reason behind World Liberty Finances unexpected ETH sell-off remains unclear, some believe that the dump was likely triggered by Ethereums ongoing price decline, while others suggest it could signal a market bottom.

Ethereum Price Crash To $1,400

Ethereums price decline to $1,400 came as a shock to the market, making it the first time the cryptocurrency had fallen so low in seven years. Notably, Ethereum was not the only leading cryptocurrency that was affected by the market turmoil, as big players like Bitcoin also suffered losses.

Currently, Ethereum seems to be recovering slightly from its previous low and is now trading at $1,591 after jumping 7.44%. Although this recovery brings hope of a rebound, the cryptocurrencys value has still dropped by 16.63% over the past month. Moreover, technical indicators from CoinCodex highlight that sentiment surrounding the cryptocurrency is still deeply bearish, suggesting that further declines could be on the horizon.

Text source: NewsBTC

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