Trump’s crypto move fails to meet expectations: Bitcoin declines

On the first day of the week, Bitcoin was trading at 82,300 dollars and Ethereum at 2,056 dollars, with the total value of the cryptocurrency market calculated at 2.66 trillion dollars. While Bitcoin's market capitalization fell to 1.62 trillion dollars, Ethereum's market capitalization was recorded at 249 billion dollars. On Friday, March 7, there was an outflow of 409.3 million dollars from spot Bitcoin ETFs and 23.1 million dollars from spot Ether ETFs.

The price of Bitcoin continued its volatile course following the Trump administration's statements regarding crypto assets. While the highest volatility of the year was observed in crypto markets, Bitcoin's annual volatility rate stabilized around 58% after reaching 59.4%.

Bitcoin, which had been rising since last November on expectations of Trump's pro-crypto policies, has lost more than 15% of its value in recent weeks. Following the crypto summit held at the White House, investors were disappointed by the information that the government has no plans to purchase Bitcoin and will only create a reserve with seized assets. As a result, the price of Bitcoin fell from 91,000 dollars to 80,000 dollars.

Additionally, the Trump administration's announcement of new customs tariffs triggered a sell-off in stock markets, while gold prices, seen as a safe haven, continued their rise.

US President Donald Trump stated at the cryptocurrency summit held at the White House that he hopes stablecoin regulations will be enacted by August. The summit was attended by officials from the Treasury and Commerce Departments, representatives from the SEC and CFTC, and executives from major cryptocurrency companies such as Coinbase and Kraken.

Criticizing the Biden administration's strict policies toward the crypto sector, Trump emphasized that the practice of banks closing accounts of crypto companies must end. Stating that the US should be the global leader in digital assets, Trump promised that regulatory barriers in front of the sector would be removed.

Signing an executive order before the summit, Trump approved the establishment of a Strategic Bitcoin Reserve consisting of Bitcoins seized by the US Treasury Department. Furthermore, there are plans to create a Digital Asset Stockpile to convert different digital assets into Bitcoin over time.

Members of Congress aim to quickly finalize bills containing regulations for the stablecoin market.

The US Department of Housing and Urban Development (HUD) plans to test the use of blockchain and stablecoins in grant payments. According to a report by ProPublica, the department has brought to the agenda the idea of tracking grant payments with blockchain and making some payments with stablecoins.

The project, which is planned to be launched with a limited pilot application initially, will be expanded to other units if successful. However, there are disagreements within the department regarding the project.

While some officials argue that the use of blockchain is unnecessary and complex, and that stablecoin payments carry volatility risks, others argue that the technology could make financial transactions more transparent and efficient.

In a statement, a HUD spokesperson emphasized that the department does not yet have an official plan regarding the use of blockchain or stablecoins, saying, “Education does not mean implementation.”

Speaking at the Crypto Summit held at the White House, US Treasury Secretary Scott Bessent stated that stablecoin regulations are of great importance and that the US dollar must maintain its leadership as the global reserve currency.