"Trump Effect" Resurfaces as Strategic Reserves Trigger Market Volatility
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In the crypto world, U.S. President Donald Trump has been recognized as a highly influential figure, known for his distinctive style and strong stance. His statements and actions have often created ripples throughout the crypto market, drawing widespread discussion and public attention.
Since taking office, Trump, often referred to as the "crypto president," has overseen a shift in U.S. government policy towards cryptocurrencies from campaign promises to tangible action plans. A cryptocurrency task force has been assembled by the new administration to draft a fresh regulatory framework for cryptocurrencies. Meanwhile, Staff Accounting Bulletin No. 122 (SAB 122) has been issued by the U.S. Securities and Exchange Commission (SEC), overturning the previous SAB 121 guidance. This measure has removed barriers preventing banks from custodying cryptocurrencies, pending additional regulatory guidance.
This series of actions has been seen as influencing the market, with Bitcoin's price registering a 9.5% month-over-month increase by the end of January. Market participants have begun speculating on whether these developments indicate a more crypto-friendly stance from the Trump administration in the future.
1. The First White House Cryptocurrency Summit: A Gathering of Industry Leaders
The title "First White House Crypto Summit" alone is enough to send shockwaves throughout the crypto industry. On March 1 (U.S. time), David Sacks, the U.S. AI and crypto czar, confirmed in a post that the White House will host its first-ever cryptocurrency summit on March 7 (U.S. time). President Donald Trump is set to attend and deliver a speech.
While speculation continued about the summit's agenda, David Sacks made another announcement, revealing that the March 7 summit will include discussions on establishing a national cryptocurrency strategic reserve. This revelation has significantly heightened market expectations for the event.
As the summit date approaches, the list of attendees has gradually emerged, featuring executives from several major cryptocurrency and cryptocurrency-related companies, including Coinbase, Chainlink, Exodus, and Strategy. As of this writing, confirmed attendees include Coinbase CEO Brian Armstrong, Chainlink Labs co-founder Sergey Nazarov, Exodus CEO J.P. Richardson, and Strategy Chairman Michael Saylor. Additionally, Robinhood CEO Vlad Tenev hinted on X that he will also be heading to Washington for the summit.
From the administration on the White House side, President Donald Trump will personally host the event, accompanied by his crypto and AI czar David Sacks and Bo Hines, Executive Director of the Presidential Council of Advisers for Digital Assets.
2. Trump's Endorsement: The Catalyst for a National Cryptocurrency Strategic Reserve
On the eve of the summit, Donald Trump's social media post further fueled market enthusiasm. Then, on the evening of March 2, Trump announced: "My Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I will make sure the U.S. is the Crypto Capital of the World. We are MAKING AMERICA GREAT AGAIN!"
Shortly after, he followed up with another statement: "And obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the reserve. I also love Bitcoin and Ethereum!"
Trump's remarks have undoubtedly heightened anticipation for the upcoming cryptocurrency summit. Following his statement, David Sacks added that "more valuable cryptocurrencies may be included in the strategic reserve." This further fueled market enthusiasm for the initiative.
Notably, the Trump administration's move is not an isolated effort. At least 24 U.S. states have already proposed legislation related to potential Bitcoin reserves, which could shape the regulatory landscape for the next four years. This indicates that the legal status and regulatory framework for cryptocurrencies in the U.S. are gradually taking shape, providing a stronger legal foundation for the healthy development of the crypto market.
3. Crypto Market Rebounds, Then Declines Again
Following Trump's remarks on the cryptocurrency strategic reserve and his endorsement of BTC and ETH, the crypto market experienced a broad surge.
According to CoinGecko, the total cryptocurrency market capitalization reached $3.2 trillion, marking a 5.2% increase over the past 24 hours. MEXC data shows that *URLS-BTC_USDT* briefly climbed to $94,999.99, reflecting a 24-hour gain of 7.42%. Meanwhile, *URLS-ETH_USDT* and *URLS-SOL_USDT* saw a strong recovery from previous declines, while *URLS-XRP_USDT* and *URLS-ADA_USDT* surged by over 20% within the same period.
However, within just a day, market sentiment took a sharp turn, and the crypto market saw a sudden downturn overnight. The rapid shift from bullish to bearish caught many off guard.
According to MEXC data, *URLS-BTC_USDT* briefly dropped below 83,000 USDT, erasing all the gains following Trump's endorsement. It seems that what drives the market up can also bring it down. The fate of cryptocurrencies appears to hinge on the president's words alone.
4. Debate Surrounding the Cryptocurrency Strategic Reserve
Trump's endorsement of crypto and the upcoming White House cryptocurrency summit have undoubtedly injected policy momentum and market confidence into the idea of a national cryptocurrency strategic reserve. However, the market remains cautiously optimistic about Trump's statements, particularly given the launch of the official memecoin (*URLS-TRUMP_USDT*) before his inauguration and the slow response to crypto policies since taking office. Many in the industry speculate that Trump is more likely to push for *URLS-BTC_USDT* as the preferred choice for the reserve. However, turning this proposal into reality, whether by persuading the Federal Reserve or implementing it through the Treasury Department, will face significant obstacles and time constraints.
The implementation of a cryptocurrency strategic reserve has sparked widespread debate. On one hand, government backing could enhance cryptocurrency credibility and adoption, attracting more investors and users to the market. On the other hand, price volatility and regulatory challenges remain key concerns for policymakers. Designing a sound reserve strategy with proper risk management measures will be a major challenge in ensuring the healthy development of the cryptocurrency market.
Despite these challenges and uncertainties, the establishment of a cryptocurrency strategic reserve also presents significant opportunities. Government support would not only strengthen public trust and adoption but also drive innovation and expand the application of blockchain technology, laying a solid foundation for the market's long-term growth.
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