Trump's 401(k) Order Could Send Bitcoin Price Soaring
- Trump authorizes 401(k)s to invest in cryptocurrencies
- Billion-dollar inflow could boost Bitcoin's value
- Measure could significantly increase the value of digital assets
Bitcoin and Ethereum posted gains on Thursday after current US President Donald Trump sign an executive order that changes the rules for 401(k) retirement plans, an estimated $8 trillion market.
The measure allows a portion of these funds to be invested in alternative assets, such as private equity, real estate, and cryptocurrencies. The market sees this change as an opportunity for a significant capital infusion into the digital asset sector.
In the last 24 hours, Bitcoin rose 2%, reaching $117.400 and increasing its market capitalization to $2,33 trillion. Ethereum rose 5%, trading at $3.897,12 with a market cap of $466 billion. Experts attribute part of this gain to the expected inflow of funds from 401(k) accounts.
The document stipulates that, within six months, the Department of Labor will reevaluate its stance on alternative investments and establish standards for managers who choose to include these options. It also directs the Treasury Department, the SEC, and other agencies to work together to facilitate the regulatory framework for these assets.
Estimates suggest that even small percentages of this market could have a strong impact on prices:
- A 1% investment would correspond to approximately US$80 billion, equivalent to 687.500 BTC at current prices.
- At 5%, it would be more than US$400 billion, a volume close to that needed to absorb almost all the Bitcoin available on the market.
- A 10% allocation would reach $800 billion, equivalent to 6,9 million BTC.
This executive order joins other pro-crypto actions by Trump, such as holding "Cryptocurrency Week" at the White House, signing the first federal stablecoin law, and creating the Bitcoin Strategic Reserve. His administration also reduced regulatory pressure on large companies in the sector and established the position of White House czar for AI and cryptocurrencies.
If a significant portion of these resources migrate to cryptocurrencies, the market could enter a new cycle of significant appreciation.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
VIPBitget VIP Weekly Research Insights
Ethereum and its ecosystem are set to remain in the spotlight in 2025, driven by accelerating institutional adoption and network upgrades. As the world's leading smart contract platform, ETH has benefited from billions of dollars in ETF inflows, fueling a steady price climb. Potential upside catalysts include the Pectra upgrade to enhance performance, large-scale tokenization of real-world assets (RWA), explosive growth in Layer 2 solutions such as Base, and the reduction in circulating supply of the burn mechanism. Ecosystem tokens like Lido (the leader in liquid staking) and Ethena (an innovator in synthetic stablecoins) are also poised to benefit. Institutional participation from major players like BlackRock further boosts demand for DeFi and staking products. As a result, the overall market cap of the ecosystem is expected to continue growing, attracting increasing amounts of mainstream capital.

Hong Kong Regulators Caution on Stablecoin Volatility Risks
Hong Kong SFC Enhances Virtual Asset Custody Standards
TeraWulf Secures $1.8 Billion Backing from Google
Trending news
MoreCrypto prices
More








