The post WLFI May Have Warned of Bitcoin Selloff appeared on BitcoinEthereumNews.com.

The analysis pointed out unusual spikes in WLFI trading volume and funding rates prior to the selloff but did not allege insider trading. Separately, US Senators Elizabeth Warren and Andy Kim asked the Treasury Department to review a reported $500 million investment by a UAE-backed fund for a 49% stake in WLFI. President Donald Trump said he was not directly involved in the deal and that his sons are handling matters related to the platform. WLFI Drop Raises Questions World Liberty Financial Token (WLFI), a decentralized finance governance token affiliated with the Trump family, may have flashed an early warning signal ahead of the sharp crypto market crash in October of 2025. This is according to a new analysis from crypto data provider Amberdata. The report focuses on trading activity on Oct. 10, when approximately $6.93 billion in leveraged crypto positions were liquidated in less than an hour. During that cascade, Bitcoin plunged about 15% and Ethereum dropped roughly 20%, while several smaller tokens lost as much as 70% of their value. However, Amberdata’s researchers found that WLFI began declining more than five hours before the broader market unraveled. At the time, Bitcoin was still trading close to $121,000 and showed few signs of immediate stress. BTC’s price action over the past 6 months (Source: CoinCodex) Mike Marshall, who authored the report, said the five-hour lead was difficult to dismiss as random noise. According to the analysis, WLFI displayed a series of anomalies before the selloff. Hourly trading volume surged to around $474 million — more than 21 times its typical level — shortly after tariff-related political headlines emerged. At the same time, funding rates on WLFI perpetual futures spiked to roughly 2.87% every eight hours, implying an annualized borrowing cost of about 131%. This is a sign of extreme…

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Filed under: News - @ February 16, 2026 8:32 am