- Trump makes high priority Bitcoin reserve and crypto stockpile
- They will not be replenished with taxpayer funds
- Also, the U.S. will hold and will not sell crypto reserves
- Industry leaders and lawmakers expressed excitement about the long-awaited event
President Donald Trump began his speech at the first-ever Crypto Summit in the White House – let’s follow the key points together.
“Welcome to the first day ever a White House digital asset at Summit. I know that many you been fighting for years for this and it’s an honor to be with you at the White House. Last year I promise to make America, the Bitcoin superpower of the world and the crypto capital of the planet and we’re taking historic action to deliver that promise.”
“As you know yesterday signed an executive order officially creating our strategic Bitcoin reserve and this will be a virtual Fort Knox for digital goal to be housed within the United States. That is a big thing.”
“The federal government is already among the largest holder of a Bitcoin in the world with as many as 200,000 Bitcoin obtained via civil law and various other forms of law, including enforcement actions. These existing holdings will form the foundation of the new reserve.”
“Unfortunately in recent years, the US government as far as sold tens of thousands of additional Bitcoin that were worth billions and billions of dollars. Mostly during the Biden administration, not a good thing to have done. From this day on America will follow the rule that every Bitcoin holder knows very well– never sell your Bitcoin, that’s a little phrase that they have. I don’t know that’s right or not. Well, let’s keep it that way.”
“The treasury and commerce departments will also explore new pathways to accumulated to show Bitcoin holdings for the reserve provided. It’s done at no cost to the taxpayers. We don’t want any cost of the taxpayers.”
“In addition my order of direct federal agencies to conduct an inventory in all crypto assets currently held by the US government and determine how they can be transferred easily to the treasury. Not Bitcoin, digital assets will be held in a new US digital asset stock file where it will be managed properly. “
In addition my order of direct federal agencies to conduct an inventory in all crypto assets currently held by the US government and determine how they can be transferred easily to the treasury. Not Bitcoin, digital assets will be held in a new US digital asset stock file where it will be managed properly.
My administration also is working to end the federal bureaucracy war on crypto which was really going on pretty wildly during until the election came, about five months before the election. They strong bank, closing the accounts of crypto businesses and entrepreneurs, effectively block in money transfers to and from exchanges, and a Weaponized government against the entire industry. But I know that feeling also, maybe better than you do. All of that will soon be over and we are ending operation chokepoint 2.0.
I also want to express my strong support for the efforts of lawmakers in Congress as they work for bills to provide regulatory certainty for the dollar-backed stable coins, and the digital asset market. They working very hard that this is a tremendous opportunity for economic growth and innovation in our financial sector, and will really go a long way.
We feel like pioneers. We want to keep it that way the US dollar long into the future. We’re gonna keep it that way I hope law makers will send that legislation to my desk before August.
However, this did not cause Bitcoin to move bullish, because for all the high priority that is clearly indicated – the careful accumulation policy raised questions. In particular, after the crypto summit, we saw Bitcoin decline by 7.3% to ~$85K, then attempts to recover to ~$88.K and later to ~$90.8K.
Still, after that, we saw a sharp correction to ~$85.7K, then ~$85.3K, and although Bitcoin has been around ~$86.4K these past few days trying to break resistance a few times – we saw a sharp correction more recently and at the time of writing the price at ~$84.4K.
It also showed big numbers for ETFs, in particular, Bitcoin exchange-traded funds saw nearly $370M worth of net outflows, and as we know institutional investors are playing a big role in the crypto market right now.
Conclusion
Did everyone remain satisfied with the event and get the expected reaction from the markets? Obviously not. But does that in any way diminish the strategic importance of this event, as well as the unambiguous position of the US towards digital assets in general and cryptocurrency in particular? Also no.
Also, we should not forget about the upcoming SEC roundtables, where specific frameworks will be adopted that directly affect how the US will deal with cryptocurrency and crypto companies.
Stay tuned for updates about politics, economics, and market reactions, and be aware of the rapidly evolving regulation, financial, and crypto landscape.
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