As expectations of Federal Reserve rate cuts drive simultaneous gains in both stocks and bonds, the cryptocurrency market is moving in the opposite direction. On Thursday, digital assets and related equities continued their downward trajectory, with tokens and companies linked to Trump family projects experiencing the steepest declines—these assets had previously surged on the back of Trump's pro-cryptocurrency policies.

ALT5 Sigma Corp. (ALTS.US), the institutional holder of WLFI tokens associated with Trump's decentralized finance project World Liberty Financial Inc., saw its stock plummet 12%, bringing its cumulative decline over the past week to more than 50%. The WLFI token itself dropped 25% on the day, falling to half its price from its Labor Day launch. American Bitcoin Corp. (ABTC.US), a mining company involving Eric Trump, declined as much as 22% following its Wednesday listing.

To stabilize market sentiment, World Liberty hosted 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 premium products like USD1 (a stablecoin-type product), aimed at bringing the power of decentralized finance (DeFi) to millions of users worldwide."

Another factor weighing on market sentiment is concern that regulators may impose restrictions on the numerous "publicly traded digital asset treasury companies" that have emerged in recent months—publicly listed firms that invest their funds in various cryptocurrency tokens. Many of these previously troubled companies pivoted to the cryptocurrency space, causing their stock prices (known as "DATs" concept stocks) to surge dramatically.

According to reports, given that most of these companies are listed on Nasdaq, the exchange is now requiring some crypto token-holding enterprises to obtain shareholder approval before "raising funds through stock issuance to purchase tokens." Issuing equity to finance additional cryptocurrency holdings has become a common practice among these treasury companies—a model pioneered by MicroStrategy's (MSTR.US) Michael Saylor, allowing companies to increase their crypto assets without adding debt.

Data from financial advisory firm Architect Partners shows that 184 public companies have announced plans to raise over $132 billion to purchase various cryptocurrencies. Eric Risley, founder and managing partner of Architect Partners, commented: "Nasdaq's decision clearly aligns with the rights that shareholders should enjoy. Even if regulations don't mandate it, the market should rightfully expect and demand 'full disclosure' from companies and give shareholders a voice. Admittedly, this may slow the pace of such transactions, but that might be a good thing."

Numerous other cryptocurrency treasury companies, including those holding Ethereum, also saw their stock prices decline. Sharplink Gaming (SBET.US) dropped 8.26% while Ethereum fell 3.3%. DeFi Technologies (DEFT.US), which holds Solana tokens, declined 3.88% as Solana dropped 3.8%.

WLFI token investor Morten Christensen, who also operates AirdropAlert.com, noted that as crypto treasury company stocks fall, the prices of their underlying cryptocurrency holdings are also being dragged down, as investors reassess the actual value of the underlying tokens on these companies' balance sheets.

"I believe there's currently significant arbitrage activity between ALT5 Sigma Corp.'s stock and the WLFI token, until the valuation ratio between the two returns to reasonable levels. My intuition is that traders are closely watching the ratio between ALT5's stock price and WLFI token price, and naturally, short sellers are profiting from this as well," Christensen said.

Regarding the WLFI token specifically, Andrew Tu, head of business development at crypto market maker Efficient Frontier, indicated that some traders were disappointed as the token's circulating supply ultimately exceeded expectations. Additionally, some investors who purchased the token at prices ranging from 1.5 to 5 cents chose to take profits, factors that collectively intensified the token's price decline.

Meanwhile, the latest employment data released Thursday further confirmed the cooling trend in the U.S. labor market, with employer hiring appetite remaining subdued in August. After the Federal Reserve cut rates by 100 basis points last fall, it has maintained stable rates this year due to concerns that tariff policies might again drive up prices.

"From a macro perspective, investors are slightly reducing risk exposure ahead of tomorrow's nonfarm payrolls data. This will be a key economic indicator before the Fed's interest rate meeting later this month," said Shiliang Tang, managing partner at Monarq Asset Management.

Bitcoin, the cryptocurrency market bellwether, fell approximately 2% to around $109,800, near the lower end of its recent trading range. On the eve of last year's U.S. election, Bitcoin was priced at about $69,000, while on August 14 this year, it reached an all-time high of slightly above $125,000.