Trump Holds Crypto Summit: Big Promises, Disappointing Results for Investors!

Jakarta, Pintu News – On Friday, the White House held a crypto summit that is expected to be a turning point for digital asset investors. President Donald Trump, who calls himself the “crypto president,” invited executives from top crypto companies to discuss his administration’s plans to remove the strict regulations put in place during the Joe Biden era.

However, the outcome of this meeting fell short of expectations. Instead of getting concrete support from the government, the participants only received ambiguous promises. The crypto market did not respond positively. On Friday afternoon, the price of Bitcoin (BTC) fell 3% to $87,000, and by the end of the week it had plummeted by 7%. As of Sunday morning, the global crypto market capitalization had shrunk by more than $100 billion, with the Bitcoin price dropping below $83,000.

Bitcoin’s Disappointing Strategic Reserve

One of the major announcements of the summit came from David Sacks, Trump’s so-called “crypto minister”. On Thursday night, he announced that Trump had signed an executive order to create a Bitcoin strategic reserve.

Initially, the news sparked euphoria among investors, with the assumption that the US government would start buying large amounts of Bitcoin to create higher demand in the market. However, once the details were announced, enthusiasm faded.

As it turns out, this strategic reserve is not for buying new Bitcoin, but is simply a regrouping of Bitcoin that has been seized by law enforcement in criminal cases. There is no new investment, no additional budget, and no schedule for future Bitcoin purchases.

In addition to Bitcoin, the Trump administration also proposed a “digital asset reserve” that includes Ethereum (ETH), Ripple (XRP), and other seized tokens, but without government investment. In fact, if the government decides to buy Bitcoin in the future, the purchase should be budget-neutral-that is, it should not cost taxpayers money, effectively shutting down the possibility of large-scale acquisitions.

Jeff Park, an executive from Bitwise, criticized this policy stating that this move is too small. He emphasized that without real investment from the government, this strategic reserve is nothing more than a symbolic act that has no significant impact on the crypto market.

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Investors Disappointed with Trump’s Empty Promises

During the meeting, Trump promised to make the US the “crypto capital of the world,” but investors expected more than just rhetoric. The White House attempted to portray the Bitcoin reserve as a “digital Fort Knox,” where the government could store Bitcoin instead of selling it indiscriminately.

David Sacks added that in recent years, Bitcoin sales by the US government have often cost the country money, as the price of Bitcoin tends to rise after being sold. With this new policy, the government plans to hold on to Bitcoin for longer so as not to harm the country.

However, investors were further frustrated when confusion arose regarding the listing of three non-Bitcoin tokens referred to as “founder tokens” in the reserve. Many thought that these tokens would get official recognition from the government, but the White House later clarified that they were simply part of assets that were once seized by law enforcement authorities.

Furthermore, speculation that Trump would remove the capital gains tax for crypto was also not borne out. This rumor was widespread in the crypto community, but Trump shut down the possibility in this meeting.

Crypto’s Role in US Politics

Crypto is playing a big role in the 2024 US election, with various companies and political groups affiliated with the crypto industry contributing more than $245 million to campaigns. Almost half of the total corporate donations in the election came from crypto companies, according to a Public Citizen report.

This financial support helped the Republican Party win, and many industry players hoped that the election results would bring more favorable policies for crypto. However, up until now, they have only received friendlier rhetoric from the government, but no real policies that could boost the growth of the crypto industry.

Trump himself has had a rocky relationship with crypto. Before taking office, he launched a meme coin that briefly added billions of dollars to his paper fortune before plummeting in value. Now, as president, he has pledged his support for crypto, but the summit proved that words alone are not enough to move markets.

Trump promised to “end the federal bureaucracy’s war on crypto.” However, for investors, the meeting left more questions than concrete solutions.

Also Read: Cardano and Check Point Collaborate for AI-Based Blockchain Security!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Cryptopolitan. Trump’s Crypto Summit Fails to Impress Investors. Accessed March 10, 2025.
• Featured Image: Axios