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However, the lack of immediate policy changes or groundbreaking announcements disappointed them, leading to a sell-off.
David Sacks Disappoints Bullish Bitcoin Traders — Will Elon Musk Spoil Crypto Demand?
Traders expected definitive steps, such as formally including Bitcoin in U.S. reserves or major tax reforms favoring digital assets. But they were left disappointed.
For instance, Sacks confirmed that the sovereign wealth fund is unrelated to the Bitcoin reserve, dashing hopes of a direct institutional allocation into BTC. Furthermore, while officials stated they would explore the viability of a Bitcoin Strategic Reserve, market analysts interpreted this as political rhetoric rather than a firm commitment.
Additionally, the U.S. government reinforced its vested interest in expanding stablecoin adoption worldwide, positioning USD-backed digital assets as a superior alternative. Officials emphasized that stablecoins could create trillions of dollars in demand for USD and U.S. Treasuries, strengthening the dollar’s global dominance rather than promoting Bitcoin as an alternative store of value.
“Elon Musk stated the plan is to cut $4b a day from the federal budget, the Trump admin wants to get out of entrepreneur’s hair with permitting to grow the economy and have stated a goal of zero inflation by EOY 2025,” said TCB, an independent market analyst, adding:
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