The White House crypto summit turned out to be a surprising event for investors who were expecting sweeping changes in government policy.
Regulation Rollback and Market Decline
The crypto summit held by Donald Trump at the White House on Friday left investors disappointed. Instead of receiving real support, attendees were met with vague commitments, and the market experienced a downturn. By noon, Bitcoin had already fallen 3%, sitting at $87,000, and by the end of the week, it was down 7%. As of Sunday morning, the crypto market had erased over $100 billion in total market cap.
Strategic Bitcoin Reserve Unveiled
On Thursday night, Trump's 'crypto czar' David Sacks announced the creation of a strategic bitcoin reserve. However, the initial excitement quickly faded as it was revealed that the reserve would consist of already seized coins rather than new purchases. A separate 'digital asset stockpile' for Ethereum and Ripple was also mentioned, but there was no new government investment. Jeff Park from Bitwise commented that a bitcoin-only strategic reserve isn't a win for the industry.
Trump's Promises and Investor Expectations
At the summit, Trump expressed his vision of making the US 'the crypto capital of the world', but investors were looking for more than just words. The reserve was presented as a 'digital Fort Knox' for bitcoin, but raised questions and confusion. So far, Trump's friendly rhetoric against regulatory pressure hasn't resulted in significant actions, leaving many in the crypto sector disappointed.
The White House crypto summit resulted in disappointment among crypto enthusiasts. Trump's promises remain without concrete actions and results, while the market responds with uncertainty.
