Bitcoin Price Surges Above $117K as Trump Signs Executive Order Allowing Crypto in 401(k) Plans
In a surprising turn of events, Bitcoin saw a significant rebound today, climbing back above $117,500 after hitting a local low of $114,278 just the day before. This sudden surge in price comes on the heels of a groundbreaking executive order signed by President Donald Trump, which paves the way for cryptocurrencies like Bitcoin to be included in 401(k) retirement accounts.
The executive order, which was officially signed by President Trump, instructs the Department of Labor to reevaluate its current guidelines on fiduciary responsibilities in ERISA-governed plans and to outline the proper process for offering diversified funds that incorporate alternative investments. Furthermore, the order calls for collaboration between various federal agencies, including the Department of Labor, the Treasury Department, and the SEC, to assess whether regulatory updates are necessary to support this new policy. Specifically, the SEC is tasked with revising its rules to facilitate access to alternative assets like digital currencies in retirement accounts.
According to a White House fact sheet, President Trump aims to provide American workers with more investment options to achieve stronger and more secure retirement outcomes. The fact sheet highlights the competitive returns and diversification benefits that alternative assets, including digital assets like Bitcoin, can offer.
Galaxy Digital CEO Mike Novogratz emphasized the significance of this executive order, noting that a substantial amount of capital will now have exposure to Bitcoin and other cryptocurrencies. He predicts that a massive influx of funds will flow into the crypto market as a result of this policy shift.
Ryan Rasmussen, Head of Research at Bitwise, outlined the potential impact of this executive order on the Bitcoin market. He projected that if cryptocurrencies capture a certain percentage of the $8 trillion 401(k) market, it could result in billions of dollars flowing into the crypto space.
This move by President Trump is expected to be a game-changer for Bitcoin adoption, as it adds momentum to the growing institutional interest in digital assets. In recent years, institutions have been increasingly turning to Bitcoin as an investment, with a significant uptick in purchases by institutional investors.
The corporate Bitcoin treasury race is also heating up, with companies like Nakamoto and Twenty One Capital leading the charge. Nakamoto, in particular, is set to acquire a substantial amount of Bitcoin through its planned merger with KindlyMD, while Twenty One Capital already holds a significant amount of BTC in its reserves.
Overall, President Trump’s executive order marks a significant step towards mainstream adoption of cryptocurrencies like Bitcoin, signaling a new era of investment opportunities for American workers. The crypto market is poised for further growth and development as a result of this landmark policy shift.