Trump-linked WLFI token plunges over 30% amid severe sell-off, low liquidity, and market-wide liquidations following Bitcoin and Ethereum volatility.
The World Financial Liberty (WLFI) token has experienced a dramatic plunge. At one point, the price traded lower by more than 30%. Consequently, this drop extended a brutal multi-week sell-off substantially. This massive drop has resulted in the loss of almost half of the token’s total market cap. On the 10th of October, the token traded as low as $0.1405. It then later bounced slightly again to $0.1459 in a volatile move.
Low Liquidity and Extreme Volatility Define WLFI Trading
The steep fall in prices is explained by severe volatility. WLFI is currently classified under highly illiquid. Therefore, a relatively small sell order can have a devastating effect on the price. The token has had huge price fluctuations recently. For example, there were moments when the price fell to close to zero on some exchanges. This level of instability is common for very small-cap assets.
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This price volatility is not uncommon for newly launched tokens. It is also characteristic of tokens with few trading pairs. Indeed, low trading liquidity is the main reason for such steep drops. A limited order book means that selling pressure overpowers demand in a short period of time. This dynamic makes the price crash dramatically and rapidly.
Traders are facing high levels of slippage because of this low liquidity. Slippage implies the difference between the executed price and the displayed price is very high. Thus, traders often get less for their tokens than they expect. High slippage can quickly liquidate leveraged positions. This, in turn, aggravates the overall market sell-off.
WLFI is associated with the Trump family. This association often generates speculative interest in a short period of time. However, the token is not widely tracked by the major data providers. It is primarily traded on decentralized platforms. Or, trades on smaller centralized exchanges. This lack of institutional support is part of the reason it is so unstable in the first place.
WLFI Token Sell-Off Mirrors Broader Market Liquidation Stress
The recent WLFI plunge occurred against the broader backdrop of market turmoil. For example, Bitcoin recently went below $102,000. This huge decline was verified by data from Binance. Subsequently, BTC was able to rebound quickly to $110563.5. However, the price was lower by 7.03% in the day as a whole.
Ether was also hit by excessive volatility during this period. In fact, ETH hit a low of $3,400.00 first. It later managed to recover a bit to $3,722.30 afterwards. This was a huge 9.11% decrease in general value. This widespread volatility hit almost all the altcoin markets immediately.
Global tariffs and market panic were the drivers behind the steep correction. US President Donald Trump announced recently 100% tariff on China. This news sent the price of Bitcoin reeling straight away. The tariff war precipitated huge liquidations around the world. This brings out the sensitivity of the crypto market to the risks of global trade policy in a concrete manner.
The total amount for liquidation was about $706.2 million. This happened in a recent 24-hour period of time. Specifically, the long positions were responsible for $648.5 million of this overall loss. This is the largest single-day liquidation for this year. The information collected by Coinglass indicates the high pressure on the market.
Moreover, the total liquidation amount across all the markets came to about $19.134 billion. Of this immense total, there was about $16.679 billion for long positions. Therefore, the WLFI drop came during a time of extreme pressure on the market. The lack of institutional support makes the WLFI token especially vulnerable to external shocks.
