An analyst believes Donald Trump could have been the “worst insider trader ever,” as the cryptocurrency market crashes on Trump’s tariffs, after significant purchases.
Donald Trump has been accumulating cryptocurrencies, especially via the World Liberty Financial (WLFI) project, with its activities increasing in January. Interestingly, all the accumulation happened before this recent crash, supposedly caused by Trump’s trade wars, with the US tariffs increase.
In this context, the long-term stock and crypto investor Jelle said Trump is “the worst insider trader ever.” Specifically, Jelle was looking at Trump’s team recent Ethereum (ETH) purchases, which sums up to 59,403 ETH.
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As Finbold reported, Trump-backed WLFI bought 3,079 ETH for approximately $10 million, later adding up to the Ethereum position. Besides Ethereum, Trump also bought Bitcoin (BTC) and a few other cryptocurrencies, even launching his own memecoin (TRUMP), which has now completely nuked, bringing significant losses to its holders.
Usually, successful insider traders like the infamous Nancy Pelosi, use the privileged information or their power, ruling, to make financial decisions that benefit their positions, positioning accordingly before creating the news that move the markets.
Donald Trump’s crypto portfolio down in contrarian insider trade
In this recent case, however, Donal Trump’s trade wars with the increased tariffs had the opposite expected effect – at least while looking at Trump’s publicly disclosed crypto wallets.
According to Arkham Intelligence, Trump’s crypto portfolio is now worth $2.95 million, down 32.25%. Meanwhile, the World Liberty Fi’s treasury is worth $361.25 million, down 12.07%.
Notably, these values are already considering a 5% upward bounce. The losses were larger than what is currently reported during the crash. Overall, the cryptocurrency market saw more than $2.27 billion in liquidations, setting a new record. These liquidations were even higher than during the COVID-19 crash – with Ethereum being the biggest loser.
The bullish case
Nevertheless, many analysts believe the worst has already gone, and the cryptocurrencies could be ready for the long-awaited bull rally.
One of these analysts, Michaël van de Poppe, compared the current “wipeout on Altcoins” with the COVID-19 crash. “We all know what happened after and I think that that’s the same thesis here,” he concluded.
In another post, van de Popper explained that this is what a “capitulation” looks like, predicting a “quick bounce upwards, and rally after” for altcoins. Jelle also commented on something similar, warning that bull markets have “events like this to shake you out.”
Therefore, it is possible that the current crash could have created a good buying opportunity for the ones who got ready for that. The next few days will provide even more insights on the insiders’ strategy if, for example, Donald Trump steps back on the tariffs.
In the meantime, the market wonder if Trump could be “the worst insider trader ever,” or if he has something ready to move the markets again in his favor.
Featured image from Shutterstock
