Cryptocurrencies associated with President Donald Trump and his family suffered steep losses after Democrats won control of both chambers of the US Congress, even as Bitcoin and other major digital assets rebounded.The Official Trump token, known as TRUMP, fell to an all-time low of about $1.22 on Wednesday, November 4, before recovering slightly. MELANIA, the cryptocurrency associated with First Lady Melania Trump, also reached a record low near $0.064, extending a prolonged decline in politically branded digital assets.
World Liberty Financial's WLFI token, linked to a cryptocurrency business backed by the Trump family, briefly sank to approximately $0.046 before recovering part of its losses. The movements followed Tuesday's midterm elections, which handed Democrats control of the House of Representatives and Senate and strengthened their ability to investigate the president's business interests.
By Wednesday, TRUMP had fallen approximately 18% over 24 hours to $1.25, while MELANIA was down about 13% at $0.065. WLFI showed a more uneven performance, recovering to approximately $0.048 after touching its record low. Its partial rebound contrasted with the continuing weakness of the two meme tokens. Prices varied throughout the session, making the timing of individual market snapshots important when comparing their performance across exchanges and different trading platforms.
The sell-off was particularly striking because the wider cryptocurrency market moved higher. Bitcoin rose above $80,000 during Wednesday's recovery, while Ether also advanced. The divergence suggested traders were distinguishing between digital assets exposed directly to Trump's political standing and cryptocurrencies whose appeal extends beyond his administration.
Trump Media & Technology Group, the company behind Truth Social, also came under selling pressure. Its Nasdaq-listed shares closed Wednesday at $4.49, down approximately 24.5% from $5.95 the previous session, marking a record closing low. The decline added to losses across businesses and investments associated with the president.
Democratic gains have sharpened attention on potential congressional scrutiny of World Liberty Financial and other Trump family ventures. Representative Robert Garcia, who is expected to lead the House Oversight Committee when the new Congress convenes, has signalled an intention to examine the family's cryptocurrency activities.
Among the issues attracting Democratic attention is an investment connected to the United Arab Emirates in World Liberty Financial. Lawmakers have raised questions about possible conflicts of interest involving foreign investment and the president's official responsibilities. Those concerns remain allegations and subjects for potential oversight, rather than established findings of wrongdoing.
Democrats will acquire greater authority to request documents, summon witnesses and conduct committee investigations after taking control of Congress in January. Such powers could expose the businesses to more detailed examination, although any investigation would still need evidence to substantiate particular claims.
The election result could also complicate legislation governing cryptocurrency markets. The Digital Asset Market Clarity Act, intended to establish clearer federal oversight of digital assets, passed the House in 2025 but subsequently stalled in the Senate. Its prospects now depend on negotiations with Democratic lawmakers whose priorities include consumer protection and financial transparency.
Nevertheless, Democratic control does not automatically imply opposition to the cryptocurrency industry. Candidates supported by digital asset interests won numerous races, and some Democratic legislators favour clearer rules for exchanges, stablecoins and token issuers. The political outlook for the sector therefore differs from the immediate pressures facing Trump-branded investments.
World Liberty Financial has also moved to address weakness in its own token. The venture announced a WLFI buyback programme following the price decline, with purchases intended to draw on income generated within its cryptocurrency operations. The initiative could reduce tokens circulating in the market, although its eventual effect depends on execution and trading conditions.
The scale of the losses illustrates the volatility of the two meme coins. TRUMP traded more than 98% below its January 2025 peak of approximately $73, while MELANIA was more than 99% beneath its former high near $13. Neither token represents a conventional ownership interest in the president's businesses.
WLFI serves a different purpose as a governance token associated with World Liberty Financial. Its price nevertheless remains sensitive to sentiment towards the venture, questions about its commercial arrangements and the political environment surrounding its prominent backers.
The next scheduled promotional event for TRUMP holders is a November 22 dinner involving the president, with invitations tied to the token's leading holders. The arrangement provides another example of the connection between the cryptocurrency's marketing and Trump's public profile.
Topics
Cryptocurrency