Bitcoin and Ethereum extended their gains on Thursday after U.S. President Donald Trump finalized an executive order that could transform the country’s $8 trillion 401(k) retirement market.
The new rules open the door for Americans to invest retirement savings in private equity, real estate, cryptocurrencies, and other alternative assets — a change that could unleash a wave of new capital into digital markets.
Bitcoin rose 1.93% over the past day to $117,456, pushing its market capitalization to $2.33 trillion, while Ethereum jumped 5% to $3,863, now valued at $466 billion. Market watchers point to the executive order as a catalyst, with speculation mounting over how much retirement capital might flow into crypto.
Under the regulation, the Labor Department will revisit its stance on alternative investments in retirement plans within six months and clarify the fiduciary responsibilities of offering such options. The order also directs coordination between the Treasury Department, SEC, and other agencies to smooth regulatory pathways for these assets.
For the cryptocurrency sector, the implications could be enormous. If even a fraction of the $8 trillion 401(k) market finds its way into digital assets, the impact on prices could be dramatic. Estimates suggest that:
- A 1% allocation would inject roughly $80 billion, equal to around 687,500 BTC at current prices.
- A 5% allocation would exceed $400 billion — enough to absorb nearly all Bitcoin available on the market today.
- At 10%, the inflow could reach $800 billion, translating to nearly 6.9 million BTC.
Industry advocates argue the change will modernize retirement investing and provide savers with higher-return opportunities, while critics warn of increased volatility, higher fees, and legal risks for plan administrators.
The move also fits Trump’s broader pro-crypto agenda, which in recent months has included hosting “Crypto Week” at the White House, signing the first federal stablecoin law, and creating a Strategic Bitcoin Reserve. His administration has also eased regulatory pressure on several major blockchain companies and appointed the first-ever White House AI and crypto czar.
If retirement savings begin flowing into cryptocurrencies at the projected scale, the market could be entering one of the most significant growth phases in its history.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/how-trumps-401k-crypto-order-could-trigger-a-mega-bull-run-for-bitcoin/