As you may have heard, this has already been a big week for cryptocurrency. With the announcement from President Donald Trump on March 2 for plans to create a national cryptocurrency reserve, which is set to include Bitcoin (CRYPTO: BTC), XRP (CRYPTO: XRP), Solana (CRYPTO: SOL), and a couple of others, it’s hard to see how there could be other big developments on the docket.
Nonetheless, there’s a major catalyst event slated for March 7. Here’s what investors should be looking out for, and why it matters for the coins you hold.
March 7 will see the very first crypto summit to be hosted by the president, at the White House. Major investors, CEOs, politicians, and other notable members of the public will be in attendance, perhaps including financial regulators. The president will be making an address with prepared remarks.
This kind of event is fully unprecedented in the history of cryptocurrency, and it will doubtlessly move the crypto markets promptly and significantly if any major policies are announced or clarified. What’s more, while volatility is guaranteed, it is very likely that new policy announcements will imply meaty changes to the industry’s potential to grow. Of particular importance will be any elaboration on the size, distribution, or actual purpose of the cryptocurrency reserve, not to mention the legal or regulatory basis for implementing it as a policy. There will also be a back-and-forth process of determining how realistic the proposed reserve is in terms of the political aspects of its implementation.
One older proposal for the reserve calls for purchasing 5% of all outstanding Bitcoin supply over the next five years. Per that proposal, the coins would be held for at least 20 years. Such a proposal being implemented for Bitcoin, or a similar one being implemented for Solana or XRP, would likely result in a gargantuan move upward in the prices of these coins. And there isn’t any guarantee such a move would be retraced, as the expectation would be that the government would hold for as long as it specified at a minimum.
In other words, these policies could easily become part of the investment thesis for why these assets are worth buying and holding forever.
There may be moments during the summit (or afterward) that tempt you to dump everything. Alternatively, there will probably be moments where you want to slam all of your remaining cash into buying coins. Resisting both of these temptations is important to preserving your portfolio’s value over the long term, so prepare for it. This isn’t the time to be actively watching the prices of your coins move from minute to minute. In fact, there is never such a time.
