Trump will host a secret meeting at the White House next Friday, will the plummeting Bitcoin receive a boost?

President Trump will host the White House's first cryptocurrency summit next Friday, further solidifying his support for the industry. The White House said in a statement on Friday night that Trump will deliver remarks at the meeting, "Participants will include prominent founders, CEOs, and investors in the cryptocurrency industry, as well as members of the President's Digital Assets Working Group." According to the statement, the summit will be led by venture capitalist and White House Crypto Czar David Sacks and managed by the Working Group's Executive Director Bo Hines. Shortly after taking office, Trump signed an executive order establishing a working group composed of major agencies to provide advice on digital asset policies to the White House and evaluate the establishment of reserves. The working group includes the U.S. Department of the Treasury and the Department of Justice, as well as the Securities and Exchange Commission and the Commodity Futures Trading Commission. During his 2024 election campaign, Trump, who had mocked cryptocurrency as a "scam", promised to simplify regulations, appoint industry-friendly figures to regulate the industry, support stablecoin frameworks, and establish a Bitcoin reserve. After his election, the industry donated millions of dollars to his inaugural committee. While Trump has not fulfilled all of these promises, his administration's policies and the summit itself mark a significant shift in the U.S. government's approach to the industry following the crackdown on FTX cryptocurrency exchange failures and other scandals. Trump himself has even entered the cryptocurrency industry, launching a meme coin shortly before his re-election and supporting a project called World Liberty Financial involving his son. The White House added in the statement, "The government is committed to providing a clear regulatory framework to promote innovation and protect economic freedom." Bitcoin Recent Sharp Decline Meanwhile, following Trump's tariff threats and turmoil in the cryptocurrency industry, risk assets have seen a larger retreat recently, with Bitcoin's sharp decline lasting a week further exacerbating the situation, signaling a dramatic reality check for one of Trump's most popular trades. On Friday, Bitcoin briefly plummeted 7.2% to $78,226, down 28% from a historical high reached less than six weeks ago. Bitcoin later recovered some lost ground and ended Friday almost unchanged. Bitcoin fell by about 18% in February, the largest monthly decline since June 2022. Zaheer Ebtikar, co-founder of cryptocurrency fund Split Capital, said, "Some big players simply said at the end of the day, 'You know what, I give up.' I think that's what we're seeing over the past week. Selling has definitely been more than usual, so it's hard to pin down a specific exchange or place." The recent decline in Bitcoin has reached technical levels this week, with many traders watching these levels for signs of oversold condition to prompt bottom-buyers to step in and at least halt further declines. Bitcoin fell below the 200-day moving average for the first time since October last year, a closely watched long-term trend indicator. The 14-day Relative Strength Index measuring Bitcoin price momentum fell below the level indicating oversold conditions this week for the first time since September last year. Concerns about the trade tensions led to a general flight to safety in the markets on Friday, pushing down almost all Asian stock markets and exacerbating the decline in European stock markets. But cryptocurrencies, which are heavily affected by changes in risk appetite, were some of the worst-hit assets. Trump Trade Conundrum This selloff highlights the swift turnaround in the fate of one of the most popular Trump trades globally: buying Bitcoin in anticipation of a widespread rebound due to Trump's crypto-friendly approach. This approach worked for a while. Bitcoin hit a record high of $109,241 on the day Trump was inaugurated on January 20. But cryptocurrencies have come under pressure recently as concerns grow that Trump's hawkish attitude toward global trade could lead to widespread pain. Stefan von Haenisch, Head of Over-The-Counter Trading for Bitgo Inc. in Asia Pacific, said, "Given the macro environment, where we are isn't surprising." He said traders are still waiting for specific measures from Trump, including Bitcoin reserves. Investors are now forced to consider how far Bitcoin, the world's largest cryptocurrency, can fall. Ruslan Lienkha, Market Manager at cryptocurrency platform YouHodler, pointed out that technical analysis suggests Bitcoin's support level is around $70,000. However, he said investors shouldn't expect Bitcoin's downfall to be so severe. Lienkha said, "We'll only see this level when negative sentiment dominates the market." Bearish sentiment has also impacted the U.S. Bitcoin exchange-traded funds (ETFs). In February, investors withdrew a record $3.3 billion from the U.S. physically-backed Bitcoin ETF, the largest monthly outflow since the fund's launch, as investors sought safer assets amid escalating geopolitical tensions and persistent inflation concerns. Trump has made some changes that have pleased cryptocurrency optimists, including appointing cryptocurrency advocates to key positions. The U.S. Securities and Exchange Commission, under former chairman Gary Gensler, conducted a years-long crackdown which recently ended investigations into several cryptocurrency firms. Trump has stated that he wants the U.S. to be the "global capital of cryptocurrency and the world's Bitcoin superpower."