A Landmark Event for Crypto Amid Broader Economic Concerns

For the first time in history, a U.S. President has personally hosted a crypto summit at the White House, marking a defining moment for Bitcoin and the digital asset space. While this should have been a bullish event, the market reaction was overshadowed by concerns over tariffs, interest rates, and disappointing job data.

Despite the significance of the summit, macro uncertainty continues to weigh on both equities and crypto, leaving investors with mixed signals.

Market Overview: A Mixed Week for Stocks and Crypto

U.S. stock markets saw a modest rebound on March 7, with the Dow Jones up 0.52%, S&P 500 rising 0.56%, and Nasdaq gaining 0.71%. Meanwhile, gold remained steady at $2,917 per ounce, and crude oil hovered around $67 per barrel.

The latest U.S. job report showed 151,000 jobs added in February, falling below the projected 170,000 but slightly above January’s 143,000. Normally, weak job data would be seen as a negative indicator, but given the current market conditions, bad news is considered good news—investors now anticipate an earlier rate cut from the Federal Reserve.

Federal Reserve Chairman Jerome Powell stated that the Fed may hold off on further rate adjustments until there is more clarity on President Trump’s bold economic policies. Powell emphasized that monetary policy will depend on how trade, immigration, fiscal policy, and regulatory changes impact the economy.

Meanwhile, Bitcoin dipped to $85,000, and the overall crypto market cap dropped to $2.9 trillion.

The crypto sector has been bombarded with a wave of major developments over the past week, including:

• The SEC dropping lawsuits against multiple crypto companies
• President Trump signing an executive order to establish the U.S. Bitcoin Reserve Fund
• States and federal lawmakers accelerating efforts to introduce comprehensive crypto legislation

Despite these positive events, market sentiment remains bearish. Bitcoin’s price hovering between $80,000 and $90,000 over the past few weeks has led to frustration and uncertainty among investors who expected a stronger breakout.

The White House Crypto Summit: A Turning Point for Bitcoin and Digital Assets

The White House Crypto Summit represents a significant policy shift in how the U.S. government views digital assets. President Trump reiterated his commitment to making the U.S. the “Bitcoin superpower of the world” and the “crypto capital of the planet.”

Key Announcements from the Summit

The U.S. government will conduct a full audit of all crypto assets under government control, with plans to consolidate management under the Department of the Treasury for enhanced oversight and strategic planning.

President Trump reaffirmed the principle of "Never Sell Bitcoin." Meanwhile, MicroStrategy’s Michael Saylor proposed that the U.S. should acquire 25% of the total Bitcoin supply, a controversial suggestion that sparked debate.

The administration is pushing for clearer crypto regulations through Congress, while also establishing a sovereign digital asset reserve and supporting stablecoins backed by U.S. Treasury bonds to strengthen financial stability.

While many had speculated about potential capital gains tax exemptions for long-term crypto holders, this topic was not explicitly addressed at the summit. However, President Trump promised to overhaul crypto tax policies, including revising all previous IRS guidelines.

Post-Summit Market Developments

Following the summit, Coinbase CEO Brian Armstrong praised President Trump’s leadership, emphasizing that the U.S. now has a Strategic Bitcoin Reserve and is making progress toward regulatory clarity. Coinbase is planning to expand its U.S. workforce by 1,000 employees.

Meanwhile, Gemini, the exchange founded by the Winklevoss twins, filed for an IPO with Goldman Sachs and Citigroup as underwriters, signaling a major step toward integrating crypto into traditional finance.

The summit’s outcome reinforces a mutually beneficial relationship between the crypto industry and the U.S. government. As crypto companies expand, they create jobs and increase tax revenues, while also holding large amounts of U.S. Treasuries via stablecoin reserves.

This highlights a key economic reality: governments do not have permanent allies or enemies—only permanent interests. If crypto benefits the government, regulatory support will likely continue.

The Summit’s Broader Impact on Crypto Policy

While the White House Crypto Summit is a monumental step forward, many regulatory uncertainties remain unresolved. The crypto industry now boasts over 17,000 tokens, far beyond the 2,000 tokens that existed just a few years ago.

White House crypto advisor David Sacks clarified in a recent interview that when President Trump mentioned Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA), he was simply referencing the top five digital assets by market cap, rather than endorsing specific projects.

In a CNBC interview, Treasury Secretary Scott Bessent provided further insight into the government’s strategic Bitcoin and digital asset policies:

• Ending Bitcoin sell-offs is the first step before considering future BTC acquisitions.
• Seized crypto assets will no longer be dumped into the market but transferred into the national crypto reserve, starting with Bitcoin.
• A long-term Bitcoin accumulation strategy will be discussed at the next crypto summit, with a focus on acquiring BTC without using taxpayer funds.

The U.S. government currently holds around 198,110 BTC (~$18 billion). However, in January 2024, the government proposed returning 94,600 BTC to Bitfinex as part of a restitution settlement, which could reduce the state’s Bitcoin holdings to approximately 103,480 BTC.

If this proposal is finalized, only Bitcoin held within the official U.S. Bitcoin Reserve will be protected from future liquidation.

Potential Strategies for U.S. Bitcoin Acquisition

Investment firm VanEck has outlined several non-taxpayer-funded methods that the U.S. government could use to purchase Bitcoin, including:

1. Using the Exchange Stabilization Fund (ESF) – The U.S. Treasury manages a $39 billion stabilization fund, which could be partially allocated to Bitcoin acquisitions without congressional approval.
2. Revaluing Gold Reserves – The U.S. gold stockpile is valued at $42 per ounce (a price set in 1973), while the market price is $2,925 per ounce. Revaluing these reserves would unlock billions in additional capital that could be redirected toward Bitcoin purchases.
3. Allocating Surplus Federal Reserve Profits – The Fed generates profits from its lending operations, and surplus funds could be redirected toward Bitcoin, pending congressional approval.
4. Issuing Bitcoin-Backed Treasury Bonds – The Treasury could sell special bonds collateralized with Bitcoin, attracting institutional investors who want exposure to BTC while preserving their capital in U.S. debt instruments.
5. Selling Surplus Cheese Reserves – The U.S. government stockpiles over 1.4 billion pounds of cheese, valued at $2–4 billion. Liquidating these reserves could fund Bitcoin purchases without impacting the federal budget.

Final Thoughts: The Future of U.S. Bitcoin Policy

The White House Crypto Summit has cemented Bitcoin’s role as a strategic asset, but the next major milestone will be the passage of Senator Cynthia Lummis’s Bitcoin Reserve Bill.

If passed, this bill would legally enshrine the Bitcoin reserve into law and potentially pave the way for large-scale BTC acquisitions.

At the time Trump made his initial pro-crypto pledges, Bitcoin was trading at $65,000. Today, BTC hovers around $85,000–90,000, reflecting a gradual but steady bullish trajectory.

While short-term volatility persists, the long-term implications are clear: Bitcoin and crypto are becoming integral to U.S. economic policy. The coming months will reveal whether the U.S. government takes additional steps to solidify its Bitcoin position or remains in a purely strategic holding phase.