A cryptocurrency associated with the Trump family, the World Liberty Financial Token (WLFI), may have signaled a major market breakdown hours before Bitcoin moved on October 10, 2025, according to a new analysis. The report suggests WLFI began a sharp decline over five hours ahead of a broader crash that saw roughly $6.93 billion in leveraged positions liquidated and Bitcoin fall about 15%.
A new analysis suggests the **World Liberty Financial Token (WLFI)** may have provided an early warning of a major cryptocurrency market selloff on October 10, 2025. On that day, roughly $6.93 billion in leveraged crypto positions were liquidated in under an hour, with Bitcoin falling about 15%.
The report found WLFI began a sharp decline more than five hours before the broader market downturn. Researcher Mike Marshall noted, “A five-hour lead time is hard to dismiss as coincidence.” The analysis examined unusual trading patterns around WLFI prior to the selloff.
WLFI’s hourly trading volume jumped to roughly $474 million, about 22 times its normal level, minutes after tariff-related political news. Funding rates on WLFI perpetual futures also surged to an annualized borrowing cost near 131%.
The study does not claim insider trading occurred. Instead, it argues the structure of crypto markets can make certain assets matter more than their size suggests.
Marshall said the trading pattern appeared focused on WLFI rather than the broader crypto complex. “What we actually saw was concentrated activity in WLFI first,” he stated. The rapid trading acceleration suggests prepared execution rather than real-time interpretation by retail traders.
The link to the wider crash involves leverage, as WLFI’s price drop reduced its value as collateral on trading platforms. This forced traders to sell liquid assets like Bitcoin and Ether to cover positions, triggering further market liquidations.
WLFI’s realized volatility reached nearly eight times that of Bitcoin during the episode, making it particularly sensitive to stress. Marshall cautioned the findings cover a single event and more data is needed to establish statistical consistency.
He believes the signal’s useful life is finite, as it is valuable specifically because it is under-monitored. “The moment it becomes consensus, the alpha gets arbitraged away,” Marshall concluded.
