WLFI price dips as World Liberty Financial rotates treasury from WBTC to WETH

World Liberty Financial (WLFI) has witnessed a notable dip in price following significant treasury movements.

The cryptocurrency’s price has fallen by 3.70% over the past 24 hours, diverging from its impressive seven-day gain of 15.67%.

This price action comes amid a strategic rotation of assets from Wrapped Bitcoin (WBTC) into Wrapped Ethereum (WETH).

Treasury reallocation from WBTC to WETH

On-chain data highlighted by Lookonchain reveals that WLFI withdrew 162.69 WBTC, valued at nearly $15 million, from the Aave lending protocol.

Out of this, approximately 27.12 WBTC, worth $2.5 million, was swapped for 770.6 WETH.

Lookonchain

@lookonchain
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WLFI(@worldlibertyfi) is rotating from $WBTC into $ETH.

They just withdrew 162.69 $WBTC($14.98M) from #Aave and swapped 27.12 $WBTC($2.5M) for 770.6 $ETH.

intel.arkm.com/explorer/addre…

8:09 AM · Jan 7, 2026

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The move reflects World Liberty Financial’s intention to increase exposure to Ethereum while reducing reliance on WBTC.

This rotation is part of a broader strategy to rebalance the treasury and optimise returns from DeFi assets.

WLFI’s decision to prioritise WETH highlights the growing utility and potential of Ethereum within the project’s ecosystem.

Analysts suggest that this adjustment is not an exit from crypto but a calculated reshuffle to strengthen long-term positions.

WLFI’s decision to rotate part of its treasury from WBTC to WETH reflects confidence in Ethereum’s growing utility and network improvements.

Ethereum has become the backbone of decentralised finance, smart contracts, and tokenised assets, offering far more functionality than Bitcoin’s wrapped version.

Recent scalability upgrades, including the recently launched BPO hard fork, have improved transaction speed and reduced fees, making it more efficient for large-scale institutional operations.

By increasing WETH exposure, World Liberty Financial positions itself to benefit from Ethereum’s expanding ecosystem, stronger adoption, and future growth potential, aligning its treasury with the most versatile blockchain asset.

Regulatory and political pressures

WLFI’s recent price dip is also influenced by regulatory uncertainty.

US crypto legislation continues to face delays, affecting Trump-affiliated projects such as WLFI.

The political scrutiny surrounding the Trump family’s involvement in crypto ventures amplifies project-specific risks.

Investors remain cautious due to concerns over compliance, token concentration, and governance centralisation.

This regulatory backdrop, combined with market volatility, adds downward pressure on WLFI’s short-term price movements.

WLFI price outlook

From a technical standpoint, WLFI’s seven-day Relative Strength Index (RSI) recently reached 85, signalling overbought conditions.

This triggered profit-taking after a sharp surge driven by geopolitical news, including the arrest of Venezuela’s president by the US, and previous rallies.

The token’s failure to maintain $0.1653, near the 50% Fibonacci retracement level, intensified selling pressure, creating the perfect storm for a temporary correction.

TradingViewTraders should watch the immediate support level at $0.1653, as holding above this is crucial for a potential rebound.

If WLFI turns bullish, the first resistance level to monitor is $0.1729, which could pave the way for a rise toward $0.1800.

Conversely, a drop below $0.1619 could see the token test the next support level at $0.1570.

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