Retail Traders Question Whether Crypto Remains Decentralized As Trump’s ‘Strategic Reserve’ Fuels Debate Ahead Of White House Summit

Retail traders on Stocktwits are voicing concerns that institutional influence is tightening its grip on crypto, challenging the long-standing notion of decentralization. 

Skepticism has grown in the wake of President Donald Trump’s proposal for a ‘strategic crypto reserve,’ raising fears that government involvement and Wall Street’s deepening presence could redefine the industry.

A Stocktwits poll showed that 35% think crypto is shifting toward centralization as big money takes control, while 21% go even further, declaring decentralization “dead” as Wall Street tightens its grip.

Only 26% maintain that crypto is decentralized, with 18% seeing a balance between institutional influence and community control. 

Stocktwits poll asking retail investors if they believe crypto is aligns with its decentralised ethos. | Source: Stocktwits

Shortly after Bitcoin ETFs celebrated their first anniversary on Jan. 10, Trump – who has pledged to be a ‘crypto president’ –  was sworn in for the second time, igniting what cryptocurrency proponents believe could be a golden era for digital assets.

Asset managers including VanEck, 21Shares, and Canary Capital have moved to capitalize on expectations of a crypto-friendly administration, filing at least 16 applications for exchange-traded products tracking digital asset indices or specific crypto tokens such as Solana (SOL) and Ripple’s XRP, according to reports.

Beyond XRP and Solana, Canary Capital has also filed for products tied to Litecoin and Hedera (HBAR). 

The sentiment highlights growing concerns that traditional financial institutions are shaping the future of cryptocurrencies, which used to be perceived as safe-haven assets operating independently of the stock market. 

One user commented that crypto is now under the government’s control and predicted that authorities would push prices lower to accumulate assets cheaply.

Meanwhile, the 18% who see “some influence” acknowledge institutional involvement but believe the decentralized nature of blockchain technology will prevent a full-scale takeover.

In contrast, just 26% of respondents maintain that crypto remains decentralized, arguing that blockchain’s structure inherently resists centralization, no matter how much capital traditional finance injects into the market.

Bitcoin maximalists, however, remain confident that while the broader crypto landscape may succumb to institutional forces, Bitcoin itself is immune.

Retail sentiment on Stocktwits around Bitcoin turned ‘bullish’ from ‘neutral’ just a day earlier, with chatter at ‘high’ levels ahead of the upcoming White House Crypto Summit.

Bitcoin (BTC) retail sentiment and message volume on March 6 as of 7:30 a.m. ET | Source: Stocktwits

Despite concerns over centralization, Bitcoin has rebounded, reclaiming the $90,000 mark with a 2.7% gain for the day, according to CoinGecko. 

Last week, Bitcoin’s price fell to a low of $78,940 after Trump reaffirmed plans to move forward with tariffs on Canada, Mexico, and China, pressuring risk assets. 

While the cryptocurrency has since bounced back, it remains 16.6% below its all-time high of nearly $109,000. 

Over the past month, Bitcoin is down 7.7% but has gained around 36% in the past year.

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Read also: Retail Buzz Around Trump’s Crypto Reserve Plans Overshadows Tax Breaks Ahead of White House Summit