Trump held first-ever cryptocurrency summit, Bitcoin's price fell
Photo: Donald Trump, President of the United States (Getty Images)
The White House held its first-ever cryptocurrency summit on Friday, but despite this, Bitcoin's price still declined, according to NBC News.
The summit brought together leaders from an industry that has become the largest group of donors in the 2024 elections. The goal of the event was to reaffirm President Donald Trump's administration's commitment to making the United States the crypto capital of the world. Additionally, the administration officially moved away from the strict regulations imposed under former President Joe Biden.
However, some investors appeared to have expected more. Following the summit, Bitcoin's price dropped by 4%, and by the end of the week, it had fallen by approximately 8%.
What preceded price drop
The drop in Bitcoin's price was attributed to David Sacks, the White House's chief specialist on AI and cryptocurrency.
Specifically, President Trump signed an executive order on Thursday to create a strategic reserve of Bitcoin. However, shortly after, Sacks clarified that the US had no active plans to make additional cryptocurrency purchases.
Instead, the reserve would consist of existing Bitcoin stocks confiscated by law enforcement from suspects or seized during civil proceedings.
Additionally, Jeff Park, the head of Bitcoin investment group Bitwise, expressed a cautious reaction, calling the details of the order an imperfect outcome.
"An EO is a singular political directive that can stick or disappear as easily as Biden’s EO on gender-affirming care for minors or the EO that sought to restrain the AI industry - Without the collective power of legislation that reflects the will of the people’s coalition building, it is not likely the game-changing thing that kicks off a bunch of second order things people expect," he stated.
