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It’s been a while since we’ve uttered the words quantitative easing, and for good reason. Markets have been operating smoothly without the Fed’s infamous program, and even amidst the selling we’ve seen lately, it’s been fairly orderly.

But has this orderly market carried over into cryptocurrencies? Hardly. Many cryptos staged impressive rallies after Sunday’s initial announcement from President Trump about the reserve fund, only for them to reverse all their gains the next day.

So, could today’s Crypto Summit mark the start of a new era for this sector that’s becoming more mainstream by the day? Let’s discuss…

Confidence Makes Markets

I want to be very clear about something - I treat crypto like any other asset class or sector. Yes, the blockchain technology is special, and isn’t going anywhere, but where the majority of these coins end up is anyone’s guess.

Over the past few weeks, I’ve been covering various types of cryptocurrencies in TheoTrade’s live room, from privacy coins, tokens, and more.

There’s still a lot of regulatory uncertainties in the sector, and as a result, no shortage of predatory behaviors in the memecoin department.

Instead of news surrounding a strategic crypto reserve today, I’d be more interested in seeing more regulatory clarity. This may sound silly, but for the next leg of the long-term bull market in crypto to continue, there needs to be more institutions involved.

And when the big dogs truly invade a space, the number of rules goes up.

So, could this crypto summit line up with a bottom in the crypto sector sooner rather than later? I think so.

But if we keep seeing governments making strategic investments into the space, it should help mitigate some of the volatility in the major coins going forward. This also means that if you’re investing into the majors, the realistic returns may not be as high into the future.

That doesn’t mean that we can’t trade the coins, and especially, the stocks tied to the sector. In fact, it’s the stocks tied to crypto that have more of my attention at the moment, and it’s for the same reason we like to buy gold mining stocks when gold prices are rising.

I’ll keep you posted on what I’m seeing in this space going forward.

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