Amid the simultaneous rise of stocks and bonds, the cryptocurrency market is experiencing a decline: the "Trump concept" becomes a heavy disaster area as regulatory clouds loom over DATs companies

According to Zhitong Finance APP, as expectations for interest rate cuts by the Federal Reserve rise, leading to gains in both stocks and bonds, the cryptocurrency market is moving in the opposite direction.

On Thursday, digital assets and their related stocks continued to decline, with tokens and companies linked to the Trump family experiencing the most significant drops—these assets and companies had previously surged largely due to Trump's pro-cryptocurrency policies.

The WLFI token associated with the decentralized finance project World Liberty Financial Inc., linked to Trump, saw its holding institution ALT5 Sigma Corp. (ALTS.US) plummet 12%, with a cumulative decline of over 50% in the past week. The WLFI token dropped 25% on the day, halving its price since its debut on Labor Day. The mining company American Bitcoin Corp. (ABTC.US), which Eric Trump is involved with, saw a maximum drop of 22% after its listing on Wednesday.

To stabilize market sentiment, World Liberty held an online event on CoinMarketCap on Thursday, attracting over 2,000 participants. A company spokesperson stated, "The World Liberty team is focused on developing and launching top products like USD1 (stablecoin-like products), aimed at bringing the power of decentralized finance (DeFi) to millions of users worldwide."

Another factor affecting market sentiment is the concern that regulators may impose restrictions on the numerous "listed digital asset treasury companies" (i.e., publicly listed companies that invest funds in various cryptocurrency tokens) that have emerged in recent months. Many of these companies, which had previously faced difficulties, saw their stock prices (the so-called "DATs" concept stocks) soar after transitioning into the cryptocurrency sector.

Reports indicate that since most of these companies are listed on Nasdaq, the exchange is requiring some companies holding cryptocurrency tokens to obtain shareholder approval before "raising funds through stock issuance to purchase tokens." Financing through stock issuance to increase cryptocurrency holdings has become a common practice for these treasury companies—this model was pioneered by Michael Saylor of Strategy (MSTR.US), allowing companies to increase their cryptocurrency assets without increasing debt.

Data from financial consulting firm Architect Partners shows that to date, 184 listed companies have announced plans to raise over $132 billion to purchase various cryptocurrencies.

Eric Risley, founder and managing partner of Architect Partners, stated, "Nasdaq's decision is clearly in line with the rights that shareholders should enjoy. Even if the relevant regulations do not mandate it, the market should expect and require companies to provide 'full disclosure of information' and give shareholders a voice. Admittedly, this may slow down the progress of related transactions, but it could be a good thing."

Many other cryptocurrency treasury companies (such as those holding Ethereum) also saw their stock prices decline, with Sharplink Gaming (SBET.US) dropping 8.26% and Ethereum token prices falling 3.3%; DeFi Technologies (DEFT.US), which holds Solana tokens, saw its stock price drop 3.88%, with Solana down 3.8%

WLFI token investor Morten Christensen (who also operates the AirdropAlert.com website) pointed out that as the stock prices of cryptocurrency treasury companies decline, the prices of the underlying crypto tokens they hold are also dragged down, as investors reassess the actual value of these tokens on the companies' balance sheets.

Christensen stated, "I believe there is a significant amount of arbitrage between the stock of ALT5 Sigma Corp. and the WLFI token until the valuation ratio of the two returns to a reasonable level. My intuition is that traders are closely monitoring the ratio of ALT5's stock price to the WLFI token price, and of course, short sellers are also profiting from this."

Regarding the WLFI token, Andrew Tu, Head of Business Development at cryptocurrency market maker Efficient Frontier, mentioned that some traders are disappointed because the circulating supply of the token ultimately exceeded expectations. Additionally, some investors who bought the token at prices ranging from 1.5 cents to 5 cents have chosen to take profits, which has collectively exacerbated the decline in the token's price.

Meanwhile, the latest employment data released on Thursday further confirmed the trend of cooling in the U.S. labor market—employer hiring intentions were weak in August. After the Federal Reserve cut interest rates by 100 basis points last fall, it has maintained stable rates this year due to concerns that tariff policies may push prices up again.

Shiliang Tang, Managing Partner at Monarq Asset Management, stated, "From a macro perspective, ahead of tomorrow's (U.S.) non-farm payroll data release, investors are slightly reducing their risk exposure. This data is a key economic indicator ahead of the Federal Reserve's meeting later this month."

The cryptocurrency market "barometer" Bitcoin fell about 2% on the day, to around $109,800, sitting at the lower end of its recent trading range. Just before last year's U.S. elections, Bitcoin was priced at around $69,000; on August 14 of this year, Bitcoin reached a historic high of just over $125,000