All eyes on White House Crypto Summit amid Trump's influence on cryptocurrencies

As the cryptocurrency market reacts to statements from US President Donald Trump, attention now turns to the White House Crypto Summit set for Friday.

The summit will bring together prominent figures in the crypto sector, senior executives, investors, and members of the Presidential Working Group on Digital Asset Markets, established by Trump in a Jan. 23 executive order.

Since taking office, Trump has made positive statements on cryptocurrencies, helping drive them to new record heights.

The president is expected to speak at the summit, which will be chaired by South African billionaire David Sacks, who Trump appointed as the “crypto and artificial intelligence czar,” and is the associate of the world's richest person, Elon Musk.

The summit comes after Trump on Sunday announced plans to create a “Crypto Strategic Reserve,” where cryptocurrencies would be added to the US reserve.

The president is expected to provide details on his reserve plan, which includes Bitcoin, and his comments are likely to impact the crypto market, creating further volatility.

- Trump's influence on crypto

The cryptocurrency market has experienced sharp price fluctuations due to Trump's influence. Bitcoin reached a record high of $109,000 in January, led by Trump's win in the November 2023 presidential election. However, the price fell to $78,000 last week.

The decline was followed by a rapid rise in the market after Trump revealed plans for a “Crypto Strategic Reserve,” which would include Bitcoin, Ethereum, Ripple, Solana, and Cardano cryptocurrencies into a strategic reserve in the US, pushing Bitcoin as high as $95,000, while some altcoins saw surges above 30%.

Trump's tariffs on Canada, Mexico, and China caused another decline in the crypto market, pushing Bitcoin down to $81,000 on Monday. However, it rebounded to above $90,000 later in the week.

Trump's establishment of a pro-crypto economic administration in the US has had a significant impact. During the previous administration under former US President Joe Biden, many crypto companies faced lawsuits, which hurt the market.

The recent moves in favor of cryptocurrency companies mark a stark contrast to the Biden administration's stance. The US Securities and Exchange Commission (SEC) announced it would drop its ongoing lawsuit against crypto exchanges Coinbase and Coinbase Global.

Similar decisions were made for other exchanges, namely Kraken, Robinhood, and Gemini, as well as crypto firms like Consensys, OpenSea, and Uniswap Labs.

As investigations into crypto firms and exchanges are dropped, bills are also being introduced at the state level to add Bitcoin to state reserves. If approved, individual US states would be able to purchase Bitcoin for their reserves.