- Eric Trump’s World Liberty Financial (WLFI) is sitting on $102 million in stable coins, 56.2% f its portfolio.
- The company is suspected to be bracing for a market crash.
- Bitcoin recently created a new ATH of $111.9k three weeks ago.
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Is WLFI Bracing For a Market Crash?
World Liberty Financial, the crypto company launched by Eric Trump and inaugurated by Donald Trump in 2024 has an overwhelming amount of cash in its portfolio. The company holds $102 million in stablecoins which is 56.2% of their portfolio.
Though the company had a large amount of stablecoins in its portfolio since inception, there is a very little reason for continuing that strategy almost three quarters into its existence.
Typically, such large cash allocations are only held before market crashes or corrections. Since Donald Trump became the US President in 2024, crypto markets have rallied from $1 trillion last September to $3.33 trillion at today’s date, a phenomenal gain of over 230%.
Typically, such corrections are accompanied by corrections. Although there have been decent corrections in the Q1 of 2025, yet there is a space for further crash because the US liquidity situation has not improved much.
Bitcoin Corrects 10% After Making New ATH
Just three weeks ago Bitcoin created a new ATH of $111.970k (22 May 2025). This ATH was then followed by a 10% crash from $111.9k to $100k. However, the price soon recovered with BTC now trading at $106k.
The price has a very strong support at $100k breaking which it could fall down to $95k.
On the upside, there is a possibility that Bitcoin could cross $125k by the end of Q3, i.e., by September 2025. However, this is dependent upon rate cuts in upcoming US Federal Reserve meetings.
What Risks Does The Market See Now?
Crypto markets have been battling a low liquidity scenario since the start of the year. The unwillingness of the US Federal Reserve to cut interest rates adds to this situation despite a series of rate cuts by other central banks like the European Union Central Bank and the Reserve Bank of India.
About World Liberty Financial
World Liberty Financial is a crypto company created and led by Eric Trump and was inaugurated by his father Donald Trump in Q3 of 2024.
Besides, the company has seen major investments from Tron founder Justin Sun who invested $30 million on 26 November 2024.
