Crypto Markets Climb as Trump Expected to Sign 401(k) Executive Order Today

Crypto markets climbed on Thursday, Aug. 7, despite tariffs going into effect, as President Donald Trump is expected to sign an executive order today allowing 401(k) retirement plans to include cryptocurrency investments.

Bitcoin (BTC) rose 1.1% on the day to around $116,700, while Ethereum (ETH) surged nearly 5% to over $3,800. XRP gained 2% to climb back over $3, and Solana (SOL) remained flat on the day, trading near $170.

The total cryptocurrency market capitalization rose 2% over the past 24 hours to over $3.9 trillion, according to CoinGecko. Trading volume over the same amounted to $141 billion.

Over the past 24 hours, more than $274 million in crypto positions were liquidated, according to CoinGlass, with $216 million in shorts and $58 million in longs wiped out. ETH led liquidations at nearly $138 million, followed by BTC at $36 million and smaller-cap altcoins at roughly $18 million.

ETF Flows

In the exchange-traded fund (ETF) space, spot Bitcoin ETFs brought in $91.5 million in net inflows on Aug. 6, breaking a four-day outflow streak that included the second-largest single-day withdrawal of over $812 million on Friday, Aug. 1.

Meanwhile, ETH ETFs recorded $35 million in net inflows on Aug. 6 – just two days after suffering their largest-ever daily outflow of $465 million on Aug. 4, according to SoSoValue data.

Trump’s 401(k) EO

Experts say the market uptick comes as investors grow optimistic about a new policy shift under President Trump, who is expected to sign an executive order expanding 401(k) plans to offer cryptocurrencies, alongside private equity and other alternative assets.

Bloomberg reported that the order will direct the Labor Department to reevaluate existing guidance as well as collaborate with agencies including the U.S. Securities and Exchange Commission (SEC) and the Treasury Department.

The move is being viewed as a significant step toward mainstream adoption, boosting investor confidence as digital assets continue to integrate into traditional financial systems.

“Allowing Americans to diversify their retirement holdings with direct purchases of crypto assets through their 401(k) is arguably the largest moment in mass adoption yet,” Jacob Phillips, co-founder of Lombard Finance, said in comments shared with The Defiant:

In comments shared with The Defiant, Willem Schroé, CEO of Botanix Labs, called the move “a historic step toward financial freedom,” adding that “the next frontier will be letting people earn real yield on their Bitcoin, not just hold it.”

Earlier this week, news surfaced that President Trump is also planning to sign an executive order aimed at protecting crypto users and companies from debanking — the practice of banks cutting off services based on perceived risk. Many prominent voices in the crypto industry, especially Nic Carter, have been vocal about industry participants being targeted by debanking in the U.S., also known as Operation Choke Point 2.0.

Trump’s Tariffs

Earlier today, President Trump’s latest round of tariffs on dozens of U.S. trading partners also went into effect, pushing the country’s effective tariff rate above 17% — the highest since the Great Depression, according to CNN.

Trump also warned that additional penalties are coming for countries buying Russian energy products. Meanwhile, India was hit with a 25% tariff starting today, with an additional 25% “secondary sanctions” tariff set to begin later this month.

Treasury Secretary Scott Bessent told MSNBC today that the trade deals are “largely done” and the administration will now shift its focus to affordability.