World Liberty Financial suffers $51.7M crypto loss

World Liberty Financial (CRYPTO:WLFI) has reported a significant decline in its cryptocurrency portfolio, losing over $51.7 million due to recent tariffs imposed by former President Donald Trump.

This loss represents a 21% drop in value following the announcement of new tariffs on imports from Canada, Mexico, and China.

Between January 19 and January 31, WLFI invested approximately $242.77 million in various cryptocurrencies.

However, the market volatility triggered by these tariffs led to substantial unrealised losses across its holdings.

Ethereum (CRYPTO:ETH) was hit the hardest, incurring a loss of $36.7 million, which equates to a 24.4% decline in value.

Wrapped Bitcoin (CRYPTO:WBTC) also suffered a decline of $8 million, representing a 12.1% drop, while Ethena (CRYPTO:ENA) faced a staggering 43.7% decrease, amounting to $2.05 million in losses.

Despite these setbacks, Trump remarked that the “pain” from the tariffs would be “worth the price,” indicating his belief in the long-term benefits of his trade policies.

Market analysts are now speculating whether this downturn might present a buying opportunity for investors looking to accumulate assets at lower prices.

The broader economic environment remains turbulent, with financial markets experiencing significant fluctuations and liquidations totaling over $2.22 billion in the crypto sector alone.

Markus Thielen, founder of 10x Research, noted that the anticipated tariff measures disrupted Bitcoin's (CRYPTO:BTC) rally and jeopardised key technical support levels.

He emphasised that while many were focused on immediate market reactions, they may have overlooked the geopolitical ramifications of these trade tensions.

Looking ahead, several economic indicators will be released this week, including the ISM Manufacturing PMI and employment data, which could further influence market trends and investor sentiment.