Bitcoin, ETH, DOGE, SOL, XRP Lead Crypto Prices Rebound, Here’s Why

Crypto prices rebounded on Thursday, bringing a much-needed respite for investors after the recent negative sentiment.

Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Solana (SOL), and XRP lead the rebound.

Bitcoin price topped $116K as the U.S. Dollar Index (DXY) and 10-Year Treasury yield fell, spurring confidence in the crypto market.

Donald Trump’s Executive Order to Enable Crypto in 401(k) Retirement Plans

President Donald Trump is slated sign an executive order to enable 401(k) retirement plans to include private equity, cryptocurrencies and real estate, CNBC reported on August 7.

This marked a major victory for alternative assets, including Bitcoin, gold, and other private assets.

Americans have nearly $8.7 trillion in assets in 401(k) plans as of the first quarter of 2025, according to the Investment Company Institute data.

Fiduciaries, such as the world’s largest asset manager BlackRock, were already considering investing in Bitcoin and other cryptocurrencies.

Also, Apollo Group and the country’s second-largest retirement plan provider Empower announced including private assets in some accounts later in 2025.

The major change happened in May when the U.S. Labor Department lifted the Biden-era guidance that prevented adding crypto such as Bitcoin to 401(k) retirement plans.

The 2022 guideline mentioned volatility, fraud, and regulatory uncertainty as reasons for not including crypto in retirement plans. This approach was criticized by Wall Street executives.

Massive Shorts Liquidation

CoinGlass data revealed $120 million in crypto assets shorts were liquidated in an hour, with more than 92K traders liquidated in the last 24 hours.

The crypto market saw $270 million in total liquidations. Nearly $217 million in short positions and over $55 million in long positions were liquidated over the last 24 hours.

The most liquidated altcoins were ETH, SOL, XRP, DOGE, MYX, and ENA. The liquidation of massive shorts triggered a crypto market prices recovery.

Solana and Ethereum-based tokens were most liquidated in the last 24 hours.

The largest single short liquidation order of ETHUSDT, valued at a massive $34.28 million, occurred on crypto exchange HTX.

Crypto Market Prices Recover After this News

Bitcoin price witnessed a significant 2% rebound as retirement plans will begin to include crypto-related investments.

However, fiduciaries will still adhere to the ERISA prudent investor rule and evaluate crypto’s risks, including volatility, security, and regulatory shifts, against potential returns.

Analyst Michael van de Poppe said other crypto assets also rebounded in response to upside momentum in BTC price.

Ethereum price was up more than 6% to hit a high of $3,852. Meanwhile, XRP, Solana (SOL), and Dogecoin (DOGE) also saw major gains.

XRP price jumped over 4% to $3.07, with a 24-hour low and high of $2.94 and $3.09, respectively.

Solana price climbed 5% after the positive crypto news, with the prices trading at $172.20 at the time of writing. DOGE price was trading at 7.53% higher at $0.2142.

Experts believe Bitcoin price rally could make a comeback as traders expect 3 Fed rate cuts this year. At the time of writing, the CME FedWatch tool showed more than 91% probability of 25 bps rate cut in September.

Derivatives market data showed bullish sentiment, with total BTC futures open interest jumping 6% to $188.54 billion. Meanwhile, BTC options open interest skyrocketed 86% to $62.32 billion.