The post Crypto Market Dips After Trump’s White House Summit – Here’s Why appeared first on Coinpedia Fintech News
The White House Crypto Summit, hosted by President Donald Trump 
Donald Trump
Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election
President
wrapped up without the groundbreaking announcements like many had anticipated, including more clarity on the U.S. strategic crypto reserve. Instead of the market-boosting policies traders had anticipated, the summit delivered cautious steps toward regulation.
As expectations fell flat, the crypto market reacted swiftly. Bitcoin held relatively steady, but major altcoins like XRP, ADA, and SOL took a hit. Investors who had been gearing up for a bullish surge were left disappointed.
Altcoins Drop as Market Expectations Fall Short
Altcoins suffered bigger losses than Bitcoin after the summit. Many traders were optimistic about Trump’s pro-crypto stance and hoped for a major policy shift, such as a government-backed crypto reserve featuring leading altcoins. Instead, the summit focused on plans for stablecoin legislation by August and a commitment to easing regulations.
While this was seen as a positive step, it wasn’t the major market-moving news many had anticipated.
Bitcoin Reserve Plan Unveiled, But Investors Wanted More
One of the key takeaways was Trump’s executive order to create a US strategic reserve of Bitcoin and other digital assets. Crypto Czar David Sacks explained that the reserve would be funded using Bitcoin seized by the federal government through criminal or civil forfeiture.
However, this announcement disappointed some investors who had hoped for a broader plan to buy additional Bitcoin. The market reacted quickly, with Bitcoin’s price dropping to 86,394 dollars following the news.
Market Impact: XRP, ADA, and SOL Take a Hit
The lack of a major crypto reserve initiative led to a wave of sell-offs in altcoins:
- XRP dropped 3.5 percent in the last 24 hours, falling to 2.40 dollars. It is now down nearly 20 percent from its Sunday peak of 2.98 dollars, which was fueled by Trump’s initial reserve announcement.
- Cardano’s ADA slid more than 5 percent, while Solana’s SOL fell 4 percent, trading around 138 dollars as of Saturday afternoon in Asia.
- Bitcoin remained relatively stable, down 2.5 percent to 86,000 dollars, but still faring better than the altcoins.
Trump’s Crypto Statements Spark Volatility
The White House summit, led by David Sacks, was highly anticipated after Trump’s promise to establish a crypto reserve that would include Bitcoin, Ethereum, XRP, Solana, and Cardano.
Earlier in the week, Trump’s posts on Truth Social triggered a massive rally, with some major cryptocurrencies surging up to 60 percent. However, on Friday, Sacks clarified that Trump’s mention of those five assets was just an example and not a firm commitment. This cooled expectations and contributed to the market downturn.
A Turning Point for US Crypto Policy?
Despite the market’s negative reaction, the US government’s decision to hold onto its Bitcoin holdings could set an important precedent for other countries. This move may encourage global institutional adoption of cryptocurrency in the long run.
Trump also criticized previous government decisions to sell off seized Bitcoin, arguing that the US should never sell its holdings. At the summit, industry leaders praised Trump’s more open approach to crypto, seeing it as a shift from years of regulatory crackdowns focused on security and consumer protection.
While the short-term market reaction was negative, Trump’s evolving crypto policies could shape the future of the industry in the US and beyond.
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