US President Donald Trump has shown a strong interest in cryptocurrencies in recent months. His company, World Liberty Financial (Wlfi), made considerable investments in various cryptocurrencies, but especially in Ethereum (Eth). The last big purchase was made shortly before the introduction of new US tariffs, which led to a massive crash of the cryptom market. Is Trump ever the worst inside trader?
Trump’s pro-crypto posture and company investments
Even before his current term, Trump has repeatedly emphasized and announced his support for cryptocurrencies that the United States wants to make the world’s crypto capital. At the Bitcoin Mena conference, his son, Eric Trump, said that under Trump’s leadership of “reasonable” regulatory guidelines, the United States could make the United States a leading crypto superpower.
At the same time, Wlfi, a company with close connections to the Trump family, has invested massively in cryptocurrencies. On January 31, 2025, Wlfi said that Wlfi bought further ETH worth $ 10 million, which increased the total stock to 66,239 ETH with a current value of $ 225 million.
Shortly after these investments, the US government under Trump announced new tariffs on imports from Mexico, Canada and China. These measures led to considerable turbulence on the financial markets, especially in the cryptos sector. Bitcoin fell by up to 7 % to $ 92,500, while Ethereum dropped over 20 % to $ 2,565. There have never been larger liquidations at the cryptom market in one day.
In total, liquidations of at least $ 2.24 billion were recorded, whereby ETH was most affected with losses of over $ 609 million. In the meantime, ETH was 34 % in the red over the last 24 hours. Most investors should be aware that Trump expected such a sale, but why did his company buy a large amount of ETH so shortly before the crash?
Did Trump just invest badly?
Donald Trump’s behavior differs from classic insider trading. Usually insiders use their knowledge to sell in front of a crash or buy them cheaply before a positive message increases the market. However, Trump and his company World Liberty Financial (Wlfi) did the opposite and use his insider knowledge to achieve losses.
Wlfi bought large quantities of Ethereum before Trump’s own politics brought the market to collapse. According to blockchain analyzes, the company bought over 3,079 ETH on January 31, 2025 for around $ 10 million, which increased its total stock to over 66,000 ETH. Shortly thereafter, Trump announced new tariffs on imports from China, Mexico and Canada, which was massive to the financial markets and especially cryptocurrencies.
Instead of benefiting from this, his company lost millions within a few days because Ethereum fell over $ 2,565. If Trump had deliberately tried to manipulate the market, this procedure would be completely illogical. Insider traders would have behaved differently: they would have sold first, then announced the political measures and bought back more cheaply later.
There are two possible explanations for this behavior. Either Trump misjudged the market and believed that his decisions would not have a negative impact. Or he assumed that the market would recover quickly and wanted to invest in the long term. In both cases, it would be a strategic misjudgment that gave its company great losses. He will probably have big plans for cryptocurrencies in the next few years, so that the investment will be worth it in the long term.
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