Injective
Celestia
streamoors
Sui
Pudgy Penguins
Bitcoin
Pearl
The DJT stock price has been in a strong downward trend this year, lagging behind other social media companies in the United States, such as Meta Platforms, Reddit, and Pinterest.
The Trump Media stock has dropped by 70% this year. That brought the stock’s market capitalization from over $9.1 billion in January to $3 billion today.
Trump Media Stock Has Dropped Amid the Ongoing Bitcoin Crash
One major reason why the DJT stock price has crashed is that its crypto strategy has not worked out as expected. As with many struggling companies in the United States, Trump Media decided to use Michael Saylor’s approach by starting Bitcoin accumulation.
Saylor had managed to transform MicroStrategy from a fledgling software company into a large company worth over $120 billion by just accumulating Bitcoin.
Trump Media spent loads of money accumulating Bitcoin at an average cost of $118,529. Today, it holds 11,542 coins valued at $1 billion, meaning that its Bitcoin returns are negative 26.7%. That’s worse than other companies in the industry, like Strategy and MetaPlanet.
Trump Media stock has come under pressure this week as the Bitcoin price dropped from its last week’s high of $93,200 to a low of $83,797. Technicals suggest that Bitcoin has more downside to go.
Peter Brandt, a legendary trader and author, warned that it may drop to $50,000 in the near term and then rebound to $200k over time.
The daily timeframe chart indicates that the Bitcoin price has continued to fall over the past few days. It has already formed a death cross pattern on the daily chart and remains below the Supertrend indicator.
A break below the support at $80,500 will confirm a bearish breakdown by invalidating the double-bottom pattern. Such a move could signal further downside, as it could indicate that bears have prevailed.
A Bitcoin price crash could lead to a further decline in DJT stock prices, as the company has become one of the largest holders of BTC.
Trump Media also holds Cronos (CRO) tokens as a part of its partnership with Crypto.com. The CRO token price has plummeted from its year-to-date high of $0.3550 in August to $0.10 today.
Truth Social Platform is Shrinking as Trump Loses Support
The other part of the double whammy is that the core product is not doing well during Donald Trump’s presidency, as many people expected.
Truth Social is largely associated with Trump, a president whose popularity among his core base has deteriorated. A recent Gallup poll showed that his approval rating dropped to 36%, while his disapproval rate increased to 60%.
These numbers are the worst for any president at this stage of the presidency since the Richard Nixon era. As a result, the number of visitors to the social site has continued to fall in the past few months. Besides, advertisers have largely stayed away.
According to SimilarWeb data, the website attracted 19.4 million visitors last month. Its traffic is down by 4.45% from the previous month. Other social media companies, such as X and Facebook, experienced an uptick in the number of users.
Most importantly, the company’s revenue has dropped, and losses remain at an elevated level. Its revenue in the third quarter was less than $1 million, while its losses have soared to over $70 million so far this year.
DJT Stock Price Technical Analysis
The daily timeframe chart shows that the DJT stock price has been in a strong freefall this year. It has tanked below all moving averages, and the key support level is at $15.95, its lowest level in August and October this year.
Therefore, the most likely scenario is that Trump Media stock may keep falling, with the next key level to watch being $5.
However, there is also a possibility that the DJT share price will rebound if Bitcoin stages a strong bull run and the sentiment of Bitcoin treasury companies improves.
