The White House Crypto Summit is held this week. Why are investors paying attention to the trend of cryptocurrency reserve policy?

On the evening of March 2 local time, US President Trump announced on a social media platform that he would establish a national-level cryptocurrency strategic reserve. The first batch of included assets include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL) and ADA (ADA). This news instantly caused the price of cryptocurrency assets to rise collectively, and the total market value increased by US$300 billion in one trading day last Sunday (March 3).

After the news was announced, Bitcoin rose more than 11% on the afternoon of the 3rd to $94,164. The second largest cryptocurrency, Ethereum, rose about 13% to $2,516. Ripple, Sorana and Ida also rose by 14%, 11% and 44% respectively. "This move marks a more active transition to a cryptocurrency economy, which may accelerate institutions' recognition of cryptocurrency assets. At the same time, it may also make the future cryptocurrency regulatory rules clearer in the United States."

However, on Monday (March 4), Bitcoin price fell another 9%, giving up most of its previous gains. Bitcoin fell 8% on Monday, falling back to $86,000, according to Coin Metrics. Ethereum fell about 15% to $2,100. Meanwhile, stocks pegged to cryptocurrencies have also reversed. Coinbase and Robinhood fell 4.6% and 6.4% on Monday, with MicroStrategy's shares rising 14% from opening to turning nearly 2%.

Husegawa, a cryptocurrency market analyst at Japanese Bitcoin exchange Bitbank, said that Trump's remarks on cryptocurrency reserves last weekend have been fully priced and are difficult to sustain. Trade tensions have a particularly severe impact on cryptocurrency assets with high reliance on market risk appetite. But he added that other developments this week could bring Bitcoin prices back up. Among them, the most popular one is the first cryptocurrency summit to be held by the White House this Friday (March 7), and Trump will also make a speech.

In a statement late Friday (February 28) that Trump will speak at the meeting, "attendants will include well-known founders, CEOs and investors in the crypto industry, as well as members of the President's Digital Assets Task Force." The statement also said the summit will be led by "cryptocurrency Tsar", Sax, head of artificial intelligence and cryptocurrency affairs at the White House, and will be managed by Hines, executive director of the Digital Assets Advisory Committee. “The government is committed to providing a clear regulatory framework that promotes innovation and protects economic freedom.”

After Trump took office, the SEC has withdrawn investigations into several cryptocurrency companies, including the withdrawal of lawsuits against Coinbase, the largest cryptocurrency exchange in the United States. But cryptocurrency prices have fallen sharply in recent weeks, with some of the largest digital currencies that have market capitalization almost erased all of Trump's gains since his election. Analysts say the market needs a reason enough to keep cryptocurrencies rising, such as the prospect of a sharp rate cut by the Federal Reserve or the Trump administration’s explicit support for the cryptocurrency regulatory framework.

Previously, Jeremy Allaire, co-founder and CEO of stablecoin issuer Circle, was confident about the future of digital currency, believing it will become a "super power" and have a "far-reaching" impact. "The dollar stablecoin can expand the U.S.'s global influence," said Jeremy Allaire. "We have achieved digitization of everything: digital media, digital communications, software information, and all of this digitization enables information and communication to flow freely around the world. But in the currency field, we have not achieved that. Digital currency provides us with a whole new way, and the impact of this on the United States, small businesses and ordinary families will be profound."

Now, as the White House crypto summit approaches, investors are staring at any policy trends regarding cryptocurrency reserves. The details of the advancement of the cryptocurrency strategic reserve plan will greatly affect the market trend. If the specific implementation steps and asset scale of the reserve plan are clarified, it will undoubtedly give the market a reassurance and attract more investors to enter. On the contrary, if the details are blurred, the market may fall into turmoil again.

In addition, any changes in the regulatory framework have attracted much attention. Whether the summit will introduce new policies and rules for cryptocurrency regulation is directly related to the operating environment of cryptocurrency companies. A clear and reasonable regulatory framework can allow cryptocurrency companies to develop steadily on the track of compliance and enhance investors' confidence in the industry; and regulatory uncertainty will only discourage investors.

From a market perspective, the cryptocurrency market has always fluctuated violently. The prices of cryptocurrencies such as Bitcoin often fluctuate greatly, and investors urgently need stable signals at the policy level to judge market trends. The policy news from the White House Encryption Summit is likely to become a key factor in stabilizing the market or a trigger for a new round of market fluctuations. Therefore, investors closely monitor the trends in cryptocurrency reserve policy and hope to obtain important basis for investment decisions.

For the US government, there are multiple considerations behind establishing a strategic reserve of cryptocurrencies. On the one hand, this may be an recognition and support for the development of the cryptocurrency industry, trying to seize the initiative in the emerging digital finance field; on the other hand, it may also be to cope with the trend of global currency diversification and consolidate the US dollar's position in the international financial system. But no matter what the purpose is, its policy trends will have a profound impact on the cryptocurrency market.

Against the backdrop of the digital transformation of the global economy, the status of cryptocurrencies is becoming increasingly prominent. As a global financial power, the United States' policy trend in the cryptocurrency field will not only have a direct impact on the domestic cryptocurrency market, but will also trigger a chain reaction internationally. Countries are also closely following the developments of the White House crypto summit in order to adjust their policies and strategies in the cryptocurrency field.

The White House crypto summit has provided investors with an important window to observe the future direction of the cryptocurrency market. Investors hope to seize investment opportunities and avoid potential risks through the policy information conveyed by the summit. The trends in cryptocurrency reserve policy are undoubtedly the most critical part of the summit’s many highlights, affecting the hearts of global investors.