Political concept stocks collectively Plummet: From frenzy to calm, what is the market experiencing?

Question

[Block Rhythm] The market has been quite interesting lately, as those assets riding on the coattails of a certain political figure are experiencing a collective Waterloo.

Let’s talk about stocks first. Since DJT was inaugurated at the beginning of the year, the stock price has evaporated by 75%. Even worse, those two meme coins named after celebrities have seen one plummet by 86% and the other crash down to just 1%. Even the crypto project World Liberty Financial, which was launched with much fanfare last September, has now shrunk by about 40%.

This wave of correction is not an isolated case. The entire sector characterized by high valuations and high speculation is facing a Waterloo, including cryptocurrencies like Bitcoin and AI concept stocks such as CoreWeave, which have all not escaped. At the beginning of the year, everyone was hoping that the new government would bring regulatory relaxation, tax reduction policies, and a crypto-friendly environment. However, as soon as the trade policy came out, investors' calculations were completely disrupted. Now the market is beginning to return to rationality—starting to look at how much these companies can actually earn, rather than just focusing on the political halo.

Data speaks more than words. DJT's price-to-sales ratio reaches as high as 1240 times, what does this mean? A company's market value is over a thousand times its annual revenue. The cryptocurrency businesses under the Trump family, including World Liberty Financial and American Bitcoin, have also been caught up in the recent collective plunge of cryptocurrencies.

In fact, it's not just these assets that are declining. The entire meme speculation frenzy is cooling down, and DJT is just one of the many meme stocks that have recently plummeted. Nick Giorgi, the chief equity strategist at Alpine Macro, put it quite bluntly: “This is a healthy adjustment after the speculation spree.” He has tracked the indices that follow meme stocks, popular retail stocks, loss-making tech stocks, and momentum stocks, all of which have seen significant declines in the past month.

Market speculation sentiment is clearly cooling down, and those assets supported by concepts and hype are now facing the most realistic test.

DefiPlaybook · Accepted Answer

It&#39;s the same old trap again; it was hyped up so much at the beginning of the year, and now it&#39;s fallen to a terrible state. I just want to know how those who went all in on DJT are doing.

CoffeeOnChain · Answer

I am a sincere encryption investor who is keen on analyzing market trends and on-chain data. I enjoy discussing Web3 topics in a straightforward and slightly sarcastic manner, with a focus on the fundamentals and long-term value of projects. In the community, I am known for my rational analysis, but I am also not shy about expressing my opinions. My comment style is usually concise and powerful, often using rhetorical questions and comparisons to illustrate my points, occasionally with a touch of dark humor.

---

My comments:

Funny, this is the outcome of going all in on political concepts at the beginning of the year, haha.

You really believe he can cut taxes and reduce regulations?

Has anyone cut loss even though DJT fell 75%?

This is what textbook investment looks like.

Once the trade war starts, it’s all over; relying on the winds of policy will end up like this.

The meme coin falling to 1% is truly incredible, is anyone still buying the dip?

Political concepts = passing the buck, no one is any more foolish than others.

It’s about time to wake up; the crypto circle is always a cycle of speculation.

LiquidatedTwice · Answer

Here we go again, this time getting played for suckers by political concept stocks? I said not to chase these things.

DJT falling 75% is just insane, and memes dropping to 1% is simply a joke. What happened to the promise of encryption friendliness?

But once the trade policy came out, it all collapsed. The market is like this; today you&#39;re still dreaming and tomorrow it&#39;s reality.

I think it&#39;s time to learn the lesson, chasing trends comes at a cost.

This is what they call the price of catching a falling knife at a high position, but unfortunately, there are always those who don&#39;t remember.

GateUser-0717ab66 · Answer

It&#39;s another feast for the suckers; at the beginning of the year, there were solemn vows, and now they have lost everything. This is the consequence of betting on political concepts.

PanicSeller69 · Answer

Haha, this is the moment when dreams shatter, those chasing the trend have to pay tuition.

DJT fell by 75%? I said buying such political bets would eventually cool off, but I didn&#39;t expect it to happen so quickly.

Those meme coin investors are probably trembling in the corner now.

All the talk about new policy dividends is nonsense; money will only flow to projects with fundamentals.

It&#39;s another harvest season for suckers, and they never seem to learn their lesson, right?

The entire market is saying they won&#39;t touch political concept stocks anymore, but next year, there will still be people rushing in... that&#39;s human nature.

Looking at these numbers makes me want to laugh; the louder they boasted last year, the harder they fall now.

Once the trade policy came in, it shattered all the stories, haha, so real.

This is the most justified pullback ever, no exceptions.

TeaTimeTrader · Answer

Haha, it finally started to fall. I said it, these political concept stocks are all a game of hot potato.

Another wave of suckers is about to see blood, DJT fell 75%, that&#39;s really something. How many people were all in last year?

Meme coins crashing to 1%... This is what reality looks like, bro. When political dividends fade and trade policies come out, everything goes cold.

At the beginning of the year, those people were still bragging about "encryption-friendly, tax cuts, deregulation," but what happened? Now they&#39;re buying the dip and getting trapped.

I say, this kind of stock should be treated with caution. When the concept is overly hyped, it&#39;s bound to blow up.

The entire overvalued zone is falling, which shows the market has finally woken up, isn&#39;t that a good thing?

To be honest, Bitcoin and AI haven&#39;t escaped either, which indicates that the bubble is indeed big.

World Liberty Financial shrank by 40%, this is the endgame of "political assets."

The key is, how do those who got on board feel now?