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.
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