- The much-anticipated Crypto Summit at the White House failed to spark a rally in Bitcoin, with prices dipping after initial excitement
- Trump emphasized reversing Biden-era digital asset policies and expects a regulatory framework by August
- The U.S. Bitcoin Reserve, worth $17.7 billion, relies on seized assets, with no plans for taxpayer-funded purchases
The much-awaited crypto summit at the White House appears to not have shown enough for Bitcoin and other cryptocurrencies to rally. Today’s biggest announcement turned out to be the Bitcoin and other cryptocurrencies strategic reserve — something that was already made official hours before the summit began.
During the meeting, President Trump merely pointed out that he was reversing Biden’s policies related to digital assets. The Republican also stated that he expects to receive a clear regulatory framework from his crypto task force by August of this year.
Another disappointing aspect of today’s summit lies in the fact that the U.S. Government is not currently planning to buy Bitcoin — but rather managing the funds obtained from seized capital inherited from criminal cases.
Trump said that the U.S. would be willing to add Bitcoin funds to the reserve, as long as it is not done at the cost of the American taxpayer.
“The Treasury and Commerce Departments will also explore new pathways to accumulate additional Bitcoin holdings for the reserve,” Trump said, “provided it’s done at no cost to the taxpayers. We don’t want any cost to the taxpayers.”
So far, the U.S. Bitcoin Reserve is worth almost $18 billion. While certainly a sizable amount, the reserve is still less than two-thirds of the amount of Bitcoin held by the publicly-traded company listed on the Nasdaq stock exchange “Strategy”.
Bitcoin Dips After The Summit
The market has not reacted favorably to the news. While Bitcoin reached above $90,000 during the morning in response to the Strategic Reserve announcement — the following hours were not so kind to the world’s largest crypto.
The asset dipped all the way to the $84k margin — reaching as low as $84,704 according to CoinMarketCap.
Currently, Bitcoin trades at $86,168, down 4% over the last 24 hours. Moreover, the asset is down by a whopping 10% over the last 30 days, trading below the $100,000 level for over a month now.
Despite the instant dissatisfaction with the Crypto Summit results, the long-term effect of the Government’s efforts for clearer regulation may create a more positive outlook on the market in the future.
Coinbase’s CEO Brian Armstrong has already told a press conference outside the White House that the company is planning to hire 1,000 workers this year, as a direct result of the regulatory clarity the U.S. is trying to propose.
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