The token related to U.S. President Donald Trump is plummeting, causing the cryptocurrency market to decline across the board.
As of 8:07 a.m. on the 5th, Bitcoin is trading at $111,453, down 0.46%, according to the global coin market tracking site CoinMarketCap. Ethereum has decreased by 3.14% to $4,330, and Ripple (XRP) is recorded at $2.80, down 1.27%.
The decline in cryptocurrency prices is due to the weak performance of Trump-related tokens and stocks. ALT5 Sigma, a financial company holding the WLFI token of World Liberty Financial, a decentralized finance project linked to Trump, saw its stock price drop by about 12% after WLFI crashed. American Bitcoin, a Bitcoin mining company that went public the previous day, also plummeted by 20%. This company is associated with Trump's son, Eric Trump.
Analysts suggest that the recent surge in cryptocurrency purchases by corporations, including Ethereum, has raised concerns about the financial soundness of these companies.
Bloomberg analyzed that despite a rally in the U.S. stock market, with the Nasdaq rising about 1% on expectations of an interest rate cut, cryptocurrencies are showing weakness.