The post Crypto Market Slumps After White House Summit, Bitcoin Drops, Altcoins Plunge appeared first on Coinpedia Fintech News
The White House Crypto Summit, hosted by President Trump, wrapped up without the groundbreaking announcements like many had anticipated, including the launch of a U.S. strategic crypto reserve. As a result, the crypto market saw a downturn, with major altcoins such as XRP, ADA, and SOL, taking a hit. On the contrary investors were expecting big news to boost the market.
Notably, these altcoins witnessed steeper declines than Bitcoin. Investors were excited about President Trump’s pro-crypto stance, hoping for big announcements, like a U.S. crypto reserve that would feature major altcoins. However, the summit only presented plans for stablecoin legislation by August and a commitment to lighter regulations, which didn’t generate the market boost many were expecting.
Market Disappointment as No New Bitcoin Purchases Announced
A key highlight of the event was Trump’s executive order to create a strategic reserve of bitcoin, along with other digital assets. The reserve will be funded with bitcoin seized by the federal government through criminal or civil forfeiture, crypto czar David Sacks shared.
However, the plans disappointed some who hoped for a plan to buy more bitcoin. As a result, bitcoin’s price dropped to $86,394.
Altcoin See Steeper Decline
XRP dropped 3.5% in the last 24 hours, falling to $2.4 from a high of $2.98 earlier in the week, down nearly 20% from its Sunday peak following Trump’s initial reserve announcement. Cardano’s ADA fell over 5%, and Solana’s SOL dropped 4%, trading around $138 as of Asian afternoon hours Saturday. Meanwhile, Bitcoin showed more stability, trading at $86,000, down 2.5%, but still outperforming the altcoins.
The White House Crypto Summit, led by Trump’s AI & Crypto Czar David Sacks, was highly anticipated after Trump’s promise to create a U.S. crypto strategic reserve with BTC, ETH, XRP, SOL, and ADA.
Trump’s Truth Social posts on Sunday sparked a huge rally, with major coins surging up to 60%. However, Sacks clarified on Friday that Trump’s mention of those five cryptocurrencies was just an example, not a firm commitment, cooling down expectations.
Trump Receives Praise From Industry Leaders at Crypto Summit
Nevertheless, the U.S. government’s choice to hold onto its bitcoin could pave the way for other nations to follow suit, potentially sparking a wave of global institutional adoption of cryptocurrencies.
Trump criticized the government for selling too much of its seized bitcoin and emphasized that the U.S. should adopt a policy of never selling bitcoin. At the summit, attendees praised Trump and industry leaders for supporting crypto growth. Many executives welcomed the shift toward collaboration after years of feeling under scrutiny over security and consumer protection issues.
