The White House's first global cryptocurrency summit, held on March 7, 2025, was seen as a significant event for the crypto industry. The market had high expectations for the summit, as it was expected to deliver concrete policies supporting the crypto industry, such as the establishment of a Bitcoin federal reserve and the repeal of the previous administration's "Operation Choke Point 2.0". However, the market had already priced in these expectations before the summit took place. As a result, when the summit failed to deliver more than what was anticipated, traders took profits, leading to a sell-off.

Despite the positive signals from the summit, the lack of concrete implementation details was a major reason for the market's disappointment. For example, while the summit proposed a legislative framework for stablecoins by August and promised a more relaxed regulatory environment, these measures did not meet market expectations. The market was also disappointed by the lack of clarity on key issues such as the SEC's stance on Ethereum. This regulatory uncertainty led many investors to remain on the sidelines.

The crypto market is not isolated from the broader economic environment. In early 2025, the global economic situation added downward pressure on the market. For example, Trump's tariffs on imports from Mexico, Canada, and China in February 2025 led to a sell-off in risk assets, including cryptocurrencies. Additionally, the Federal Reserve's potential interest rate cuts in 2025, which depend on inflation data, could lead to a tightening of liquidity and put pressure on risk assets.

Internal market dynamics and sentiment also contributed to the sell-off. For example, after Bitcoin's price surged to over $100,000 at the end of 2024, some traders chose to take profits around the time of the summit. The market was also affected by a major hack on the Bybit exchange in February 2025, which led to a loss of $1.5 billion and weakened confidence in the industry's security. Furthermore, institutional investors may have used the summit as an opportunity to sell, causing retail investors to follow suit and amplify the decline.

Beyond the commonly discussed reasons, several hidden factors may have played a key role in the market's decline:

1. Internal Contradictions Within the Trump Administration: While Trump publicly supports crypto, there may be disagreements within his economic team on policy priorities. For example, if the Treasury Secretary or the Federal Reserve officials are more concerned with traditional financial stability than crypto market development, the implementation of crypto-friendly policies may be watered down.

2. Geopolitical and International Competition: Trump's "America First" policy may trigger countermeasures from other countries in the crypto space. For example, the EU might accelerate its MiCA regulations and restrict access for U.S. crypto firms, undermining global confidence in the U.S. market. Additionally, the rise of Hong Kong as an Asian crypto hub, with a 32% increase in stablecoin trading volume in 2024, may divert funds away from the U.S. market.

3. Technical Adjustments and Market Manipulation: The crypto market is filled with leveraged trading and high-frequency trading bots. The significant volatility after the summit may have triggered stop-loss or liquidation orders, accelerating the price drop. Large holders ("whales") may have also used the summit as an opportunity to sell, driving down prices and then buying back at lower levels to amplify market fluctuations.

4. Investor Skepticism About Long-Term Value: Despite Trump's promise to make Bitcoin a federal reserve asset, investors may question its feasibility. For example, is Bitcoin's volatility suitable for a national reserve? Will the U.S. dollar's dominance be undermined by the rise of cryptocurrencies? These uncertainties may lead to a lack of market confidence.

5. The Summit's Political Motives: The summit may have been more of a political show by Trump than a substantive policy push. The brief 20-minute live broadcast and the subsequent praise for Trump by industry leaders may have led investors to see the summit as more of a PR event than a real driver of change.

The market's decline does not necessarily "slap" Trump in the face, as the crypto market is influenced by many factors, not just one policy. Trump may believe that holding the summit itself has fulfilled his campaign promise, and the implementation of policy directions takes time. However, if the market continues to stagnate, it may weaken his credibility in "making the U.S. the global crypto hub," especially among his supporters in the crypto community.

In the short term, the market may continue to face pressure, especially with ongoing macroeconomic uncertainties (such as Federal Reserve policies and global trade wars) and internal industry risks (such as security incidents). However, in the long run, if the Trump administration can deliver on its promises (such as clarifying regulatory frameworks and promoting institutional participation), the crypto market could still see a new wave of growth.

• Key Observation Points:

  • The implementation of post-summit policies (such as the progress of stablecoin legislation and the SEC's classification of Ethereum).

  • The Federal Reserve's interest rate cut schedule and its impact on liquidity.

  • The reactions of other countries to U.S. policies and their impact on global capital flows.

Summary: The reasons for the market's decline despite the White House crypto summit are not singular but a result of multiple factors working together. These include the market's anticipation of the summit's outcomes, the underwhelming results of the summit itself, macroeconomic pressures, internal market dynamics, and hidden factors. While the market may continue to face short-term challenges, the long-term impact remains to be seen as policy implementation unfolds.