Background and Strategic Significance
On March 7, 2025, Michael Saylor, founder of MicroStrategy, was invited to attend a White House digital asset summit hosted by Trump. The summit brought together top executives from leading projects such as Coinbase, Kraken, and Chainlink, with the goal of discussing regulatory frameworks and strategic positioning for digital assets. Saylor’s participation has drawn significant attention due to his longstanding advocacy for “Bitcoin as a national strategic reserve asset,” and his December 2024 release of the “Digital Asset Framework,” which proposed policy recommendations such as using Bitcoin reserves to hedge against the U.S. debt crisis and to reinforce the global status of the dollar.
According to JuCoin data, following the announcement, the price of Bitcoin briefly surged by 4.2%, breaking through the $55,000 mark, reflecting the market’s optimistic expectations regarding favorable policies. This summit is seen as a pivotal turning point in dialogue between the cryptocurrency industry and the government, and it could accelerate Bitcoin’s transformation from a “fringe asset” into a “strategic tool.”
Michael Saylor’s Core Proposals and Policy Drivers
At the summit, Saylor put forward three core demands:
- Clarification of Bitcoin’s regulatory classification (defining it as a “digital commodity”),
- A national strategic reserve plan (suggesting that the U.S. Treasury hold 1 million bitcoins), and
- Corporate capital transformation (urging S&P 500 companies to allocate 1% of their assets to Bitcoin).
His policy rationale, based on extensive long-term research, suggests that if the U.S. were to implement a Bitcoin reserve plan, it could create between $16 trillion and $81 trillion in economic value by 2050.
This proposal has garnered support from some Republican lawmakers, but it faces criticism from Democrats, who argue that Bitcoin’s high volatility makes it unsuitable as a national reserve asset. Notably, President Bukele of El Salvador has met with Saylor to discuss the use of Bitcoin as legal tender, and following recent IMF loan approval, the Salvadoran government has accelerated its Bitcoin purchases to reinforce its strategic reserve position.
Potential Impact and Market Reaction
If the summit leads to a loosening of Bitcoin regulations, it could accelerate the entry of institutional funds. Currently, the U.S. Department of Justice holds approximately 200,000 bitcoins (valued at around $21 billion), which could serve as the initial assets for the reserve plan. The market widely anticipates that favorable policies might push Bitcoin past the $100,000 resistance level.
However, risks remain. The SEC’s ambiguous regulation of cryptocurrencies (currently defaulting to classify only BTC and ETH as non-securities) still looms as a “sword of Damocles” over the industry. Moreover, Federal Reserve Chair Powell has clearly stated that Bitcoin will not be included in the asset reserves, starkly contrasting with Trump’s “strategic reserve” proposition.
Technical Challenges and Long-term Outlook
Despite the optimistic policy outlook, Bitcoin still faces technical and compliance pressures. The EU’s MiCA legislation requires node operators to register compliantly, and if the U.S. adopts similar measures, it could increase the risk of centralization within the Bitcoin network. Additionally, Google’s release of the Willow quantum chip has sparked concerns that quantum computing might eventually crack Bitcoin’s cryptographic algorithms, posing a threat to its security.
Nevertheless, Saylor emphasized that the threat of quantum computing to SHA-256 is global and not limited solely to Bitcoin. He called on the industry to accelerate technological upgrades to meet these challenges. In the long term, if Bitcoin’s status as “digital gold” is confirmed by the summit, it could undermine the narrative advantages of smart contract platforms such as Ethereum, while high-performance chains like Solana and Sui may benefit from ecosystem expansion.
Investor Strategies and Market Tools
For ordinary investors, it is advisable to study on-chain data analytics and to monitor large holder movements and exchange fund flows in real time. Currently, Bitcoin’s MVRV Z-Score is at 0.8 (with a historical average of 1.2), indicating that its valuation is low but has not yet bottomed out. The $72,000–$78,000 range is considered a temporary undervalued zone, making it a potential target for phased dollar-cost averaging.
Data from the derivatives market shows that Bitcoin’s perpetual contract funding rate has turned negative, reflecting rising retail investor hedging sentiment. Investors should be wary of short-term volatility, use options tools to hedge against downside risks, and pay close attention to key milestones such as the summit’s statement on March 7 and the SEC policy decision in Q2 2025.
This summit marks a deep integration between the cryptocurrency industry and mainstream political forces. Regardless of the outcome, Bitcoin’s global narrative is poised to take a historic turn, and rational analysis along with the effective use of market tools will become the core moat for investors in the face of policy and market challenges.
Neason Oliver
