Trump-linked tokens led crypto losses after midterm vote
Key points
- Official Trump (TRUMP) plunged 17%, while World Liberty Financial (WLFI) fell more than 7% after Democrats won control of Congress.
- Political memecoins lost over 16% of their combined market value, reaching $477 million.
- Bitcoin and Ether gained as investors weighed political uncertainty, regulatory changes and security concerns.
Official Trump (TRUMP) plunged 17% to $1.33, while World Liberty Financial (WLFI) fell more than 7% following Democratic gains in the US midterm elections, according to CoinMarketCap data cited by Cointelegraph.
Democrats secured control of both congressional chambers, potentially complicating President Donald Trump's cryptocurrency policy agenda and increasing scrutiny of his family's digital asset ventures.
"Bitcoin and other established assets respond to a combination of liquidity, institutional flows and macroeconomic conditions, while politically linked tokens can be more sensitive to shifts in expectations around Washington," Cap founder and CEO Benjamin Sarquis Peillard said in a statement.
The political memecoin sector lost more than 16% of its market capitalisation, falling to $477 million, while trading volume surged 123% to $437 million.
"All of these factors leave the crypto market facing strong headwinds," HashKey senior researcher Tim Sun said in a statement.
The election also threatens to complicate progress on the proposed CLARITY Act, which seeks to establish a federal digital asset regulatory framework.
Meanwhile, Bitcoin (BTC) gained over 4% and Ethereum (ETH) climbed 6%, lifting the broader cryptocurrency market's value to $2.69 trillion.
Following the update, TRUMP was trading down 20.0% at $1.27.
Frequently asked questions
More from Crypto
Zcash grants committee drops proposed 98,000 ZEC transfer
Block faces proposed $764 million DOJ payment
South Korea's ruling party backs two-year crypto tax delay
Democrats’ midterm gains put crypto policy in flux
ZachXBT names French bank in alleged $133M theft
CertiK expands UAE digital asset security partnerships
