A highly anticipated summit full of performances and tricks!
Summarizing the three core points of last night's crypto summit:
(1) Establishing strategic Bitcoin reserves and U.S. digital asset reserves
(2) Easing regulations: The government has begun to withdraw investigations and lawsuits against the crypto industry and is pushing the Senate to repeal rules from the Biden era, such as requiring certain crypto businesses to report information to the IRS. These actions are seen as support for the industry (Washington Post).
(3) Industry participation and support: The summit attracted active participation from industry leaders, and Trump has fulfilled his campaign promise to make the U.S. the 'crypto capital' (CNBC). However, many believe this is just a show of mutual praise.
Our research conclusion
Although Bitcoin prices rose before the summit due to Trump's support, market reactions on the day of the summit were mixed, and prices did not see a significant rebound. This proves that there is a considerable gap between market expectations and the actual impact of the summit.
In our view, the summit may be seen as a symbolic action by Trump to please the crypto industry rather than a genuine push for policy.
The lack of specific implementation details has led to a clear lack of market confidence.
Trump's governance style primarily focuses on deregulation and supporting business interests, which may be seen as prioritizing short-term gains over long-term stability.
Additionally, the scale, funding sources, and uses of the strategic reserves (such as whether they will be used to pay off federal debt) remain unclear, adding to the uncertainty.
