Cryptocurrency markets witnessed selling on Sunday and early Asian session led Bitcoin below $80,000 while Ethereum saw levels below $2,000. Markets have recovered from the lows and we could see slow gains in major cryptocurrencies while the markets move on after President Trump's crypto summit failed to impress. The cryptocurrency market had high expectations from President Donald Trump’s executive order on the U.S. Strategic Bitcoin Reserve and the first-ever White House Crypto Summit. However, these events resulted in widespread disappointment among investors and traders. The executive order, signed on March 7, 2025, authorized the use of seized Bitcoin from criminal cases instead of direct government purchases, triggering a 6% decline in Bitcoin’s price. Investors were hoping for pro-crypto policies and strategic purchases of major cryptocurrencies, but the summit concluded with limited commitments, primarily focusing on stablecoin regulations and reduced regulatory resistance.

U.S. Strategic Bitcoin Reserve: A Missed Opportunity?

1. Understanding the Strategic Bitcoin Reserve
The executive order signed by President Trump on March 7 authorized the U.S. government to utilize Bitcoin seized in criminal cases rather than acquiring new assets from the open market.
This cautious approach aligns with the administration’s conservative stance on taxpayer funds, preventing speculative risks in government-backed crypto holdings.
The move was initially marketed as a historic step toward Bitcoin adoption, but market experts argue that investor expectations were unrealistic.
2. Market Reaction: Bitcoin Drops 6%
Bitcoin’s price plummeted more than 6% following the announcement, as investors had anticipated the U.S. government’s direct involvement in crypto purchases.
Crypto traders and institutional investors saw this as a lack of commitment to a long-term Bitcoin investment strategy, contributing to bearish sentiment.
Analysts suggest that the market’s reaction mirrored the DogeCoin crash of 2021, when Elon Musk’s SNL appearance failed to meet traders' expectations.

The White House Crypto Summit: High Hopes, Limited Outcomes

1. A Landmark Summit with Mixed Reactions
President Trump hosted the first-ever White House Crypto Summit, a widely anticipated event aimed at shaping the country’s crypto policy.
The summit was chaired by David Sacks, the administration’s AI & Crypto Czar, and was expected to provide stronger commitments to institutional crypto adoption.
However, the meeting yielded only vague promises on stablecoin regulations and lower regulatory hurdles, falling short of the industry’s expectations.
2. Expectations vs. Reality: No Major Crypto Reserve Plans
Investors were hoping for the inclusion of major cryptocurrencies like Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA) in a U.S. strategic crypto reserve.
Instead, the summit confirmed Bitcoin as the sole digital asset under official government consideration, reinforcing its status as "digital gold."
While some viewed this as a step toward mainstream adoption, others criticized the government’s hesitation to embrace a broader crypto portfolio.
3. The Regulatory Road Ahead
The summit’s biggest takeaway was the administration’s commitment to stablecoin legislation and regulatory clarity for digital assets.
The White House emphasized that further policy discussions would be required before making any direct investments in cryptocurrencies.
Regulatory uncertainty remains a major concern for the crypto industry, as past enforcement actions have hindered institutional investment.

Expert Opinions: What This Means for the Crypto Market

1. Institutional Adoption and Market Sentiment
Vincent Chok, CEO of First Digital, noted that the U.S. government’s prioritization of Bitcoin strengthens its legitimacy as a reserve asset.
This move could accelerate regulatory frameworks globally and encourage more institutional players to enter the market.
However, without direct purchases by the U.S. government, Bitcoin’s rally lost momentum, leading to further price volatility.
2. Lessons from the DogeCoin Crash
Many analysts compared this market reaction to Elon Musk’s appearance on Saturday Night Live (SNL) in 2021, which resulted in a sharp selloff in DogeCoin after Musk joked about it.
Similar to the overhyped expectations surrounding Musk and DogeCoin, investors had priced in aggressive pro-crypto policies from Trump that never materialized.
The event serves as a reminder that crypto traders should balance expectations with market realities.

Market Outlook: Where Do Cryptocurrencies Go From Here?

1. Bitcoin’s Short-Term Trajectory
Bitcoin’s support remains near the $2,900 psychological level, with traders closely watching for a breakout or further downside movement.
A rebound above $3,000 could restore bullish momentum, while failure to hold key support levels could lead to further declines.
The lack of direct government purchases may continue to impact market sentiment and trading volumes.
2. Stablecoins and Regulatory Developments
With the summit emphasizing stablecoin legislation, the coming months will likely focus on new rules for USDC, USDT, and other stable assets.
These regulations could provide clarity for institutional investors, potentially leading to more capital inflows into the crypto space.
3. Institutional Players and the Next Big Catalyst
While government purchases may be off the table, private institutions and hedge funds could still drive Bitcoin’s next major rally.
Traders should monitor corporate Bitcoin allocations, ETF approvals, and global central bank policies for the next big market catalyst.