Journalist Posted: February 7, 2026 Market FOMO is hanging by a thread. Literally, one small move and we could see a full-blown liquidity unwind. Makes you wonder: What exactly are investors HODLing for right now with all this volatility? On the big picture side, the market’s still bullish on U.S. President Donald Trump’s pro-crypto moves. The latest regulatory bills just add fuel, and Trump-backed World Liberty Financial [WLFI] is part of that wave. However, the technical picture tells a different story. With a 17.14% drop so far in 2026, Bitcoin [BTC] has effectively wiped out all of its post-election gains, retracing below the $63k election open price. Source: TradingView (BTC/USDT) In essence, Bitcoin has erased all the gains since President Trump stepped into the White House in November 2024. With that in mind, it’s fair to ask: Is all the “hype” around his pro-crypto policies really justified? The broader picture adds more context. The USD Index has slid 8% since the election, hitting a 2022 low of 97, while gold is up roughly 77% over the same stretch, with inflation still running above the Fed’s 2% target. That’s the opposite of what the market expected pre-election, which makes you question: Is Bitcoin’s hype still riding on President Trump’s policies? And if that confidence starts to fade, could risk assets face a bigger unwind? WLFI Bitcoin dump tests confidence in Trump With conviction under pressure, timing is everything. The logic is simple: Bitcoin retracing back to pre-election levels is already making investors question President Trump’s pro-crypto momentum. Now, WLFI selling $50 million in BTC only adds more fuel to that doubt. The key question now is whether this move was just a strategic deleveraging, because the impact has been huge. Over 500k crypto traders got liquidated, with total liquidations hitting $2 billion after the news. Source: Coinglass Even so, confidence in Bitcoin hasn’t returned. Notably, WLFI’s BTC sell-off came alongside $434 million in BTC ETF outflows , with six of the top-ranked ETFs all posting outflows. BlackRock’s IBIT BTC ETF, for instance, alone saw $175 million in net outflows. Which brings us to the key question: Was this sell-off more than just a deleveraging event? With BTC down over 30% since Q4, HODLers are being forced to liquidate, and WLFI’s dump seems to fit right into that trend. On top of that, Bitcoin retracing back to pre-election levels, the muted impact of regulations on risk assets, and a bearish macro backdrop are all chipping away at confidence in President Trump’s pro-crypto momentum. Final Thoughts With Bitcoin retracing to pre-election levels, confidence in President Trump’s pro-crypto momentum is under question. USD down 8%, gold up 77%, muted regulatory impact, and a bearish macro backdrop are all fueling doubts about Bitcoin’s near-term outlook. Ritika Gupta is a Financial Journalist and Geopolitical Analyst at AMBCrypto, specializing in the critical intersection of world politics, economic policy, and the cryptocurrency markets. Her analysis is informed by her distinguished background, which includes professional experience at major news network. She holds a Bachelor's degree in Political Science and Psychology from Gargi College, University of Delhi. This academic training provides her with a sophisticated framework for dissecting complex issues such as international regulations, government fiscal policies, and the geopolitical forces that directly influence asset valuations. At AMBCrypto, Ritika applies this expert lens to synthesize macroeconomic data and political developments, offering readers a deeper context for market movements. She excels at explaining not just what is happening in the market, but why it is happening. Her work is dedicated to providing strategic insights that empower readers to understand the complex relationship between global events and their digital assets.