Wall Street is currently experiencing a significant downturn that is affecting various risky assets, including those associated with President Donald Trump.
Publicly traded investments linked to the Trump empire, such as Trump Media & Technology Group and the $TRUMP and $MELANIA memecoins, have seen a sharp decline in value since the inauguration. This decline is part of a broader selloff in the more speculative areas of the markets.
Shares of Trump Media, the parent company of Truth Social, have plummeted by 36 percent. Similarly, the $TRUMP memecoin has experienced a steep drop of 64 percent, while the $MELANIA memecoin has fallen from its peak of over $13 to less than $1.
According to Tuttle Capital Management CEO Matthew Tuttle, the market dynamics have turned against the Trump-linked assets, highlighting the inherent risks in these speculative investments. Tuttle noted, “Trump was an amazing catalyst for all of the Trump names, but these assets cannot defy gravity forever.”
The recent declines underscore the broader shift in the U.S. financial markets, which have seen a departure from the record highs witnessed in the past two years. Investors, who were previously bullish on technology companies, crypto tokens, and memestocks, are now offloading assets amidst an uncertain economic and policy landscape.
Notable tech stocks like Nvidia, Meta, and Tesla, referred to as the Magnificent Seven, have also faced a downturn, contributing to the overall market correction. Bitcoin, the leading cryptocurrency, has retraced 23 percent from its all-time high, signaling a broader market correction.
Market observers like Julian Klymochko warn that the current selloff may be the beginning of a more significant market correction. Klymochko stated, “We’re past due for a market-clearing event, and the excess froth in the market needs to be addressed.”
Despite the recent market turbulence, some experts believe that the downturn is part of the normal market volatility. Robert Ruggirello, founder of Brave Eagle Wealth Management, emphasized that February is historically a volatile month for stocks and that the recent declines do not signal a long-term bear market.
For President Trump, the declining value of his assets tied to Trump Media is a significant concern. Forbes estimates Trump’s net worth at $5.1 billion, with a substantial portion attributed to his real estate holdings and his stake in Trump Media. The public listing of Trump Media has seen fluctuations in its stock price, with the company struggling to maintain its value.
While memecoins like $TRUMP and $MELANIA are known for their volatility, the recent losses experienced by traders have raised concerns. Chainalysis data reveals that a significant number of crypto wallets have recorded losses trading these tokens, highlighting the risks associated with meme-based cryptocurrencies.
Despite the challenges faced by Trump-linked assets, there is optimism that the market turbulence may subside. Investors are closely monitoring economic indicators and policy developments to assess the future trajectory of the markets.
