With the recent fall in the bitcoin price (BTC) and other digital assets, the upcoming event could be crucial and mark a new direction for the entire blockchain ecosystem. This Friday, the first cryptocurrency summit at the White House. This meeting will feature President Donald Trump as host and will bring together leading entrepreneurs, CEOs, and investors in decentralized finance.
This initiative is part of the plans of Donald Trump, who has openly expressed his intention to position the United States as the “global cryptocurrency emporium”In line with this objective, the president announced that he has instructed his team to move forward with the creation of a national reserve of crypto assets. This fund would include BTC, ETH, SOL, XRP, and ADA.
PREPARE YOUR WALLETThe expert point of view
The recognized Blockchain asset trader, Scott MelkerBelieves that “Trump has made what may be the most bullish series of statements in the history of cryptocurrencies.” made by a president.
However, He continues to point out that the uncertainty surrounding possible future measures This issue is causing concern in the market. This could explain the recent surge in prices for several tokens, followed by their subsequent collapse.
The version close to the Oval Office
The call Trump-appointed cryptocurrency czar David Sacks He stated on his account on the social network X that there will be more details about the plan at the summit. Let us remember that this businessman was appointed by the new president of the United States to draw up a plan for the White House's social policies on digital assets and DeFi in general and as strategic sectors of the economy. Sacks is a Silicon Valley venture capitalist, investor, former PayPal executive, podcaster and friend of Elon Musk, podcaster and investor.
Intentionality and its consequences
In light of this, Melker argues that all that is needed is the right combination of news on Friday and contrasts that “Improper mixing could easily push the market into deeper frustration.”. According to this trader, “the market seems to be in limbo.” Therefore, he warns that “Friday will be an important test.”
Similarly, wonders why Donald Trump is so interested in cryptocurrencies and if this market would be at the mercy of Trump: “With a single post, you can make prices skyrocket across the pure influence over a strategic reserve. But it also has the power to frustrate space and lead us down a precarious path, one that might be great for investors, but not necessarily in the best interests of the country.” go deeper.
In fact, this isn't the first time an influential figure has impacted the price of a cryptocurrency. Elon Musk has already done it with BTC and DOGE. According to Melker, The crypto market is walking a tightrope why "Trump is leading us down a path that raises many more questions than answers. details.
One of these doubts (and perhaps the most important) that the trader sees is Whether Congress will actually approve having altcoins in the signature of crypto assets other than Bitcoin in the national reserve, given its volatility and the consequences this could have on public budgets
In addition to this, Melker raises another problem and that is that, even Trump supporters who are fully committed to cryptocurrencies, They seem uncomfortable with the inclusion of altcoins in the reserve.
Different referents have shown themselves against it, such as Tyler Winklevoss, co-founder of the Gemini exchange who posted the following comment on his X account: “I have nothing against XRP, SOL, or ADA, but I don’t think they are suitable for a Strategic Reserve. Only one digital asset in the world right now meets the bar, and that digital asset is Bitcoin. Many of these assets are listed for trading on Gemini and meet the rigorous criteria of our listing policy, but As regards a Strategic Reserve it is another rule“An asset has to be hard cash, like gold.”
On the other hand, Millions of dollars in highly leveraged BTC and ETH futures purchases have been detected.. All of this happened hours before Trump's announcement and was later sold at a profit. This has raised suspicions of insider trading that compromise the principle of DeFi: “Let's cross our fingers that we don't see another round of multi-million dollar long or short positions with absurd leverage appearing just hours before an announcement, magically positioned for the perfect trade." comments Melker.
Bitcoin and the uncertain future
Another point Melker mentions about cryptocurrencies has to do with Trump's first presidency, when the opposition acted against him in various ways. He was impeached twice, first in 2019 for abuse of power and obstruction Congressional impeachment proceedings on Ukraine and then, in 2021, for inciting insurrection after the violent events of January 6, when Trump called for disavowing Joe Biden's victory. "Both times, the Senate acquitted him" (…) "Right now, Trump has the Senate on his side, but the last thing the crypto market needs is another wave of impeachment investigations and hearings, especially with Cryptocurrencies as protagonists of everything,” the specialist emphasizes.
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If something similar happens in 2021, Melker imagines headlines such as “The Department of Justice is investigating the Trump family's involvement in cryptocurrencies. or “Trump faces impeachment charges for cryptocurrency fraud and scams” and highlights that this would not be good for digital asset prices or the entire blockchain ecosystem in general.
It wouldn't be surprising to see something like this, considering that the company World Liberty Finance, managed by Trump's family has made important cryptocurrency investmentsSimilarly, there are already specialists, such as the renowned investor and economist Peter Schiff, who maintain and call on Congress to investigate the possible manipulation of this market, based on the president's plan.
Melker says that while Trump has already done more for cryptocurrencies than the previous administration in the White House, that doesn't mean he every movement that I will do in the future is free of risks. Therefore, from his perspective, “We're walking a tightrope right now, one that could just as easily lead us to an ideal outcome or drag everything straight to hell.”
