White House Crypto Summit Sparks Bitcoi n’s Search for Support

Dear Subscriber,

On Friday, we saw the first-ever White House Crypto Summit take place.

And Bitcoin (BTC, “A-”) has been experiencing a notable price correction ever since.

At first glance, this may seem counterintuitive. After all, prices rallied when the summit was announced.

But the devil is in the details, as they say. So, let’s dive into the specifics from the summit that soured investor sentiment … and what we can expect going forward.

Policy Clarification on the U.S. Bitcoin Reserve

Last week, I pointed out a key reason for hope in President Trump’s announcement of the Crypto Summit: It was the first time he referred to the creation of a crypto “reserve” rather than a stockpile.

That wasn’t a case of me just splitting hairs over which term is “technically” correct. Each has a different connotation, which could have massively different impacts on the market and BTC’s price.

Many investors interpreted a "reserve" to mean the government would actively purchase Bitcoin through market acquisitions, which could potentially drive prices higher.

In contrast, a "stockpile" suggested that the administration would primarily retain Bitcoin already in government custody, such as those seized in criminal cases.

And indeed, following the announcement, speculation ran wild regarding which one the Trump administration would pursue.

Last week, we got clarification as the White House issued an executive order that officially positions Bitcoin and other digital assets as part of the United States’ long-term strategic resource policy.

This would be in two parts.

First is the Strategic Bitcoin Reserve. But despite its name, this “reserve” would be a consolidation of all the BTC the U.S. government has seized through criminal and civil forfeitures, similar to the way gold and petroleum are stockpiled.

Second is the Digital Asset Stockpile, a separate repository for non-specified, non-Bitcoin assets acquired through civil or criminal forfeiture.

In short, there wouldn’t be an expectation of active purchases of BTC … at least not soon. Which meant investors could no longer expect upside pressure to come from government buying.

Following the clarification, Bitcoin — which opened at $90,001 on Friday — dropped to $80,751 by Mar. 9, according to CoinGecko data. That’s an 11% drop in just a weekend.

The market is still processing this new information and adjusting expectations accordingly, trading just below $80,000 at the time of writing.

Other cryptocurrencies, such as Cardano (ADA, “B+”), XRP (XRP, “B-”) and Solana (SOL, “B”), also took a hit as the White House backpedaled on Trump's initial reserve plan.

An official clarified that those assets — previously stated to be included in the reserve by President Trump — were just examples of cryptocurrencies that could be included but are not part of a definitive list.

Long-Term Strategic Implications

While the executive order prioritizes the use of seized Bitcoin, it doesn't rule out the possibility of future acquisitions. But any such purchases would need to be "budget neutral." That means they would have to ensure no additional taxpayer burden while allowing for strategic flexibility.

Regardless of the specifics of implementation — and the near-term volatility it generates — we shouldn’t overlook the forest for the trees here.

The very fact that the U.S. government announced any type of crypto reserve underscores its growing legitimacy as an asset class.

Think back just ten years ago. Would you have believed you’d see a White House Crypto Summit back then?

The executive order marks a significant milestone in the ongoing journey of cryptocurrency toward mainstream acceptance. For the first time in U.S. history, a presidential administration has officially recognized Bitcoin as a strategic asset worthy of inclusion in government holdings.

While the price volatility is likely just a short-term market reaction, as my colleague Mark Gough mentioned in his latest update, the outcomes of this initiative could set the stage for future legislation and the broader integration of cryptocurrencies into the global financial system.

What Comes Next

As Bitcoin continues to adjust, broader macroeconomic pressures and bearish technical signals suggest that further downside risks remain.

In its drop, BTC broke its 200-day moving average, which acted as a key support level. If it fails to reclaim it, the next downside support can be found at $75,000.

Maintaining this level is crucial for Bitcoin's long-term trends.

That’s because $75,000 represents BTC’s one-year moving average. A confident break below in the past has signaled the end of bull markets.

But if support holds firm there, that could signal an opportunity to grab some BTC for cheap mid-cycle.

Investors should watch closely.

The establishment of a Strategic Bitcoin Reserve and a Digital Asset Stockpile could have far-reaching implications for the acceptance and legitimacy of cryptocurrencies worldwide.

The executive order marking their establishments is a pivotal moment in the ongoing evolution of the digital asset space.

And that means if BTC can hold support, this may be a unique opportunity to load up before the rally resumes.

Best,

Marija Matić