Trump OKs 401(k) Crypto; BTC Nears $117K, ETH Tops $3.9K
On August 8, US President Donald Trump signed an executive order allowing 401(k) crypto investments, potentially unlocking up to $12.5 trillion of retirement funds for digital assets. The move triggered a rally: Ethereum climbed 5.7% above $3,900, Bitcoin gained 2% near $117,000, and XRP surged 12.8% after resolving its SEC dispute. A stronger-than-expected jobless report further boosted rate-cut expectations, fueling market optimism.
Institutional support is growing. BlackRock has plans to launch a crypto-friendly target-date retirement fund by H1 2026. Easing Russia–Ukraine tensions also lifted PayFi, DeFi, meme, and RWA tokens, underscoring a broader bullish trend.
However, analysts warn of extreme volatility, potential fraud, unclear regulations, and high fees. Advisors recommend limiting 401(k) crypto exposure to a small share of a diversified portfolio. Traders should weigh long-term growth prospects against short-term risks before reallocating retirement assets.
Bullish
By greenlighting 401(k) crypto, the order unlocks institutional and retail retirement capital, directly supporting demand for BTC and ETH. The immediate price reaction—BTC near $117K, ETH above $3.9K, and XRP’s 12.8% surge—demonstrates strong buying pressure. Improved rate-cut odds and eased geopolitical tensions add macro tailwinds for risk assets.
In the short term, traders may ride the momentum as fund flows target digital assets within retirement vehicles. Over the long term, ongoing policy clarity and entry of large asset managers like BlackRock suggest structural support that could stabilize and elevate market valuations. While volatility and regulatory risks remain, overall the news favors a bullish trajectory for these cryptocurrencies.