Trump Media Drops 1.29% on Bitcoin ETF Launch

Trump Media's stock price fell to its lowest level since April 2025 today, with an intraday decline of 1.29%.

The strategy of buying DJT shares after they reached a recent low and holding for one week resulted in significant underperformance. Over the past five years, the strategy yielded a return of -62.86%, compared to a benchmark return of 14.46%. The excess return was -77.32%, and the CAGR was -55.77%. The strategy also had a high maximum drawdown of -85.22% and a Sharpe ratio of -0.44, indicating a challenging risk-return profile.

The recent decline in Trump Media's stock price can be attributed to the company's announcement of launching a new Bitcoin and Ether ETF. This strategic move signals Trump Media's entry into the cryptocurrency market, which has the potential to significantly influence investor sentiment and stock volatility. However, there are concerns expressed about the viability of Bitcoin, suggesting skepticism from some investors or analysts regarding this new direction.

This development comes at a time when the cryptocurrency market is experiencing heightened volatility, with Bitcoin and Ether prices fluctuating significantly. The launch of the ETF could attract new investors to Trump Media, but it also poses risks, as the cryptocurrency market is known for its unpredictability.

Investors are closely watching how Trump Media will navigate this new venture, as the success or failure of the ETF could have a profound impact on the company's future performance. The company's management has expressed confidence in the potential of the cryptocurrency market, but the market's reaction remains to be seen.