Market Meltdown: World Liberty Financial’s ETH Holdings Plunge by $88M!

World Liberty Financial, a US-based firm, faces trouble due to heavy Ethereum investments in a weak market. ETH’s price drop has caused significant losses, leaving holdings worth much less than their original price. Market trends suggest further decline, with ETH struggling at key resistance levels. Analysts warn of downside risks as large ETH transfers indicate rising selling pressure. These factors could worsen the firm’s financial struggles while crypto markets remain uncertain.

Ethereum Crash: WLFI’s Investment Tanks by $88M

US resident’s wealth management firm, World Liberty Financial, is not experiencing a good week. This firm has heavily invested in cryptocurrencies, with one of its most significant investments being Ethereum. With the current downturn in the crypto market, the performance of this firm is also disastrous. Based on the X post by the Arkham Intelligence platform, the WLFI firm could be down $88 million. 

WORLD LIBERTY FI MAY BE DOWN $88M ON $ETH

World Liberty Fi purchased a total of 67,880 ETH for ~$220M at an average price of ~$3,240.

Assuming that they did not sell any of the ETH that they moved to Coinbase Prime, their ETH holdings are currently worth $132M, and they are… pic.twitter.com/gjZWf5cB0k

— Arkham (@arkham) March 11, 2025

The Trump-owned firm had purchased each ETH in its holding at an average price of $3,240 per token. World Liberty Fi now holds 67,880 ETH, which, based on the average purchase price, equals almost $220 million. However, with the market’s fall, the ETH in the firm’s holding is now worth $132 million. This puts the firm losses just from its Ethereum investment at $88 million.

Ethereum’s Underperformance and WLFI in a Financial Bind

Most of the company’s holdings were purchased during the peak of crypto hype and the market’s capitalization. As such, this firm most likely heavily invested in ETH because of its essential role in DeFi’s future. This investment, however, did not pan out as ETH has been underperforming compared to BTC. An underwhelming performance is shown even when compared to some other altcoins, such as XRP.

WLFI’s biggest investment, ETH, has had a significant decrease in value since the firm’s purchase. ETH has failed to break the $2,000 resistance in the last hours, now trading under the $1,920 resistance. The value is now also under the 100-hourly Simple Moving Average and is trading at $1,911.09. To avoid further bearish movement, ETH needs to break the $1,920 and $1,950 resistance.

ETH on Shaky Ground: Indicators Suggest More Losses 

There are also other signs of ETH’s price drop in the future, as analysts believe it presents bearish signals. Ali Martinez, a renowned crypto analyst, has reported that Ethereum is going out of a parallel channel. This technical pattern has historically been seen in other bearish markets. Moreover, data shows that ETH’s Market Value to Realized Value (MVRV) pricing bands point to strong support at $1,440. This also could be a sign of future bearish movement, as Ethereum’s current price is near $19,000.

Another development also points to a future downtrend as large amounts of ETH are moved to exchanges. Recently, Amber Group, a popular crypto platform, deposited 20K ETH in three exchanges: Binance, OKX, and Gate.io. This amount of ETH is almost equal to $37.34 million, which could be a sign of a future sale. As such, the selling pressure could increase for ETH, pushing the value lower and adding to WLFI’s losses.

Surviving the Crypto Storm: What WLFI Must Do

World Liberty Financial faces difficulties due to Ethereum’s struggles and current market conditions. To reduce risks, WLFI must analyze its portfolio, possibly diversifying into other assets or hedging against declines. Considering staking and yield possibilities could help offset losses and provide new revenue streams. Ethere’s future remains uncertain; despite its vital role in DeFi and smart contracts, ETH struggles against Bitcoin and altcoins’ price performance. Positive developments like network upgrades or institutional adoption could reverse the bearish trend.