Lackluster Crypto Summit Drove Crypto Market into Worse Declines

The White House Crypto Summit, expected to be a watershed moment for the industry, delivered far less than anticipated.

Hosted by former President Donald Trump—who has positioned himself as the "crypto president"—the event brought together top executives from major crypto firms to discuss plans to roll back the regulatory crackdown imposed under the Biden administration.

However, instead of definitive government backing, attendees were met with vague commitments, leading to market disappointment rather than the expected rally.

The summit, chaired by Trump’s AI & Crypto Czar David Sacks, was framed as a landmark moment following the president’s pledge to establish a US strategic crypto reserve, which would include Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).

Investors had anticipated bold policy announcements, but the event yielded a more tempered outcome—plans for stablecoin legislation before August and a promise of lighter regulatory oversight.

These measures failed to spark confidence, with the market reacting negatively.

Bitcoin fell over 2% during Trump’s speech to a group of approximately 30 entrepreneurs, lawmakers, and officials, including MicroStrategy Chairman Michael Saylor, Coinbase CEO Brian Armstrong, and Treasury Secretary Scott Bessent.

Ethereum, Solana, and XRP dropped by more than 2%, 3%, and 4%, respectively.

As of now, BTC trades at $81,267.69, marking a 5.98% decline in the past 24 hours, while ETH, XRP, and SOL have also recorded steep losses.

Most altcoins remain in the red despite Trump’s recent executive order establishing the Strategic Bitcoin Reserve and authorising the creation of a digital asset stockpile.

Singapore-based digital asset trading firm QCP Capital wrote in a recent note:

“The knee-jerk reaction lower likely stems from the realization that no actual budget has been allocated for Bitcoin purchases in the near term.”

Is liquidity drying up?

Trump Tells Citizens to Never Sell Their BTC

Trump criticised the federal government’s decision to offload large amounts of seized Bitcoin, calling it "foolish" and suggesting that the US should adopt an informal policy of "never sell your Bitcoin."

Bessent echoed this sentiment, stating that Trump’s executive order would position the United States as a global leader in digital asset strategy.

Highly Anticipated Bitcoin Reserve Was Just a Repackaged Deal

The reserve did not involve new Bitcoin purchases but merely repackaged Bitcoin already seized by law enforcement in criminal cases.

There were no fresh investments, additional funding, or timelines for future acquisitions.

A separate “digital asset stockpile” would be established for Ethereum, Ripple, and other confiscated tokens, though without any government investment.

The executive order also stipulated that any future Bitcoin purchases must be budget-neutral, ensuring no cost to taxpayers—effectively ruling out large-scale acquisitions.

Jeff Park, an executive at Bitwise, lamented:

“We asked for too little. Having only Bitcoin and not the rest of the altcoins in the strategic reserve is not a win. ‘Exploring’ or ‘studying’ concepts is not a win. ‘Not selling’ is not a win. None of these things at the core require an EO at all to do anything.”

Investors Underwhelmed by Trump’s Promises

At the summit, Trump reiterated his vision of making the US the “crypto capital of the world,” but investors were looking for more than rhetoric.

The White House framed the Bitcoin reserve as a “digital Fort Knox,” arguing that retaining seized Bitcoin instead of selling it off unpredictably would be more financially prudent.

Sacks pointed out that past government sell-offs had often led to missed gains, as Bitcoin’s price rose after liquidation.

Confusion also arose from Trump’s social media announcement, where he mentioned three non-Bitcoin cryptocurrencies as “founding tokens.”

Many assumed this signalled official recognition, but White House officials later clarified that these tokens were merely part of past enforcement seizures.

Further dampening expectations, Trump dismissed speculation about eliminating capital gains taxes on crypto—a move that had gained traction in online communities and could have significantly impacted the market.

While regulatory pressure from the Biden administration has eased, investors were hoping for tangible reforms to drive the market forward.

Trump’s own crypto involvement has been unpredictable.

Before taking office, he launched a meme coin that briefly inflated his net worth by billions before crashing.

Now, as president, he has vowed to end the federal government’s “war on crypto,” but the summit underscored the gap between words and action.

Trump exclaimed:

“We feel like pioneers.”

His executive order directs the Treasury and Commerce Departments to explore “budget-neutral” Bitcoin acquisition strategies but stops short of using taxpayer funds for direct purchases—an approach that left many investors underwhelmed, according to David Lawant, head of research at FalconX.

He wrote:

“Bitcoin tumbled about 5% immediately following the announcement before partially recouping most of the losses, reflecting short-term expectations that the U.S. government will not be immediately committing to acquiring crypto assets in the open market.”

Some Industry Analysts Optimistic Still

Despite scepticism, some analysts view the executive order as a pivotal step toward Bitcoin’s institutional acceptance.

The order formally establishes a Bitcoin Strategic Reserve, distinct from the Digital Asset Stockpile, which will include a mix of altcoins such as Ethereum.

The reserve will be seeded with Bitcoin seized through criminal and civil asset forfeitures, though the exact allocation remains uncertain.

Currently, US government wallets hold approximately 198,000 BTC—valued at $16.1 billion, according to Arkham Intelligence.

However, a portion of these holdings originates from exchange hacks and may be subject to restitution, limiting their availability for the reserve.

The order also mandates a 60-day Treasury review to assess the reserve’s legal and investment framework.

Additionally, the Treasury and Commerce Departments must explore budget-neutral strategies for acquiring more Bitcoin, such as reallocating a portion of US gold reserves or leveraging the Exchange Stabilisation Fund—without burdening taxpayers.

Vincent Chok, CEO of First Digital, explained in an email:

“The U.S.’ prioritisation of Bitcoin as a reserve asset not only legitimises its status as “digital gold’ but also sets a precedent that could accelerate regulatory frameworks and drive institutional adoption worldwide. This move will inevitably prompt a diverse range of responses from global regulators."

He added:

“For those aligned with U.S. policy, it could accelerate the establishment of their own national strategic stockpiles. Such federal confidence could inspire institutions to move on-chain, increasing participation, injecting liquidity into the decentralised finance market, and broadening interest beyond Bitcoin to other digital assets like stablecoins.”

Will a More Concrete BTC Plan Be in the Horizon?

The pressing question now is whether Congress will step in to establish a long-term Bitcoin acquisition strategy.

While an executive order can shape policy, only legislation can solidify Bitcoin’s role within US financial reserves.

The upcoming Bitcoin for America event on 11 March, led by Senator Cynthia Lummis and the Bitcoin Policy Institute, is expected to influence the debate on legislative action.

Meanwhile, traders are seeking regulatory clarity while also grappling with the broader implications of Trump’s trade tariffs, which have unsettled global markets and pressured risk assets, including crypto.

As uncertainty persists, could Trump’s presidency pose new challenges for the future of digital assets instead?