At 3 a.m. in the U.S., a Bloomberg report flipped the crypto world upside down: Trump is ready to sign a presidential executive order officially approving 401(k) pension accounts to invest in cryptocurrencies! As soon as the news broke, the price of Ethereum shot up like a rocket, surging 8.3% in just one hour, breaking through $3,800 and hitting a three-month high! The trading volume across the network exploded, with retail investors shouting 'the bull is back' while frantically increasing their positions. Just how fierce is this market? What 'nuclear-level' favorable factors are hidden behind it? Let's break it down clearly!
1. Trump's 'Signature Release': $7.3 trillion pension fund opens up, is ETH the biggest winner?
The direct trigger for this surge is Trump's 'Presidential Executive Order'. Simply put, American 401(k) pension accounts are finally allowed to invest in cryptocurrencies! It's worth noting that the total size of all 401(k) accounts in the U.S. exceeds $7.3 trillion; even if only 1% of the funds enter the market, that’s $73 billion of fresh capital! As the 'second brother' of the cryptocurrency market, with a large market cap and strong liquidity, ETH naturally became the primary target for pension fund allocation.
What’s more critical is that this wave of policy dividends is not a 'small skirmish'. Trump's executive order directly overturned Biden's 'ban order', incorporating cryptocurrency investments into presidential directives, which is essentially a 'vote of confidence' for Wall Street institutions—who would dare to stop pension funds from buying cryptocurrencies? Traditional financial giants like BlackRock and Fidelity have long been eyeing the lucrative pension fund market, and now that the policy has loosened, they will undoubtedly rush to acquire core assets like ETH, further driving up prices.
2. The Federal Reserve's 'Divine Assistance': 25 basis point rate cut leads to a frenzy of capital flowing into risk assets.
If Trump's executive order is a 'policy nuclear bomb', then the Federal Reserve's interest rate cut is 'adding fuel to the fire'. On the same day the news of pension funds entering the market broke, the Federal Reserve announced a 25 basis point rate cut, instantly loosening market liquidity. Historical experience shows that during interest rate cut cycles, funds flow from low-risk assets like bonds and deposits to high-risk assets like stocks and cryptocurrencies. As a 'blue-chip stock' among cryptocurrencies, ETH naturally became the first choice for funds.
From a technical perspective, ETH's price action also confirms this: the daily MACD golden cross breaks through the zero line, and on-chain whales added 270,000 ETH in a single day. With the dual stimulation of pension funds entering the market and the Federal Reserve's interest rate cut, the probability of ETH hitting the previous high of $4,000 is soaring!
3. Historical script repeats: Will the 2020 'pension fund buying private equity' trend reoccur?
Veteran investors may remember that in 2020, Trump hinted that 'pension funds could buy private equity', resulting in a frenzy of institutional capital flowing into Bitcoin, leading to a massive bull market. Now, the same script is playing out again, only this time the protagonist is ETH, and the policy impact is even stronger—directly allowing pension funds to invest in cryptocurrencies, rather than 'tentatively hinting'.
What’s even more noteworthy is that the ETH ecosystem is entering an explosive phase. Leading DeFi protocols like Lido and Aave have already become important channels for institutions to allocate ETH. After pension funds enter the market, the locked amounts and trading volumes of these protocols are likely to surge, further consolidating ETH's position as a 'underlying asset'. In other words, ETH is not just 'digital gold', but may also become the 'new treasury bond' of the cryptocurrency market.
4. Be cautious of short-term pullbacks, but the long-term trend is set: the bull market has just begun!
Of course, one must remain calm after the surge. In the short term, the price of ETH is already approaching key resistance levels, and with regulatory details still to be released, a pullback due to 'good news being fully priced in' may occur. However, from a mid-to-long term perspective, the entry of pension funds is just the beginning, not the end. With the accelerated layout of traditional financial institutions and the continuous improvement of the ETH ecosystem, the cryptocurrency market is expected to usher in a true 'institutional bull market'.
For retail investors, the most important thing now is not to blindly chase highs, but to grasp the 'core logic' of this market movement: policy dividends + capital inflow + ecosystem explosion. As the 'leader' of this market wave, ETH deserves long-term attention; while leading ecosystem protocols like Lido and Aave may become 'indirect beneficiaries' of pension fund allocations.
Bull market signals are already evident; are you ready?
From Trump's executive order to the Federal Reserve's interest rate cut to the entry of pension funds, this series of favorable factors is forming a 'resonance effect', driving ETH prices to continue soaring. Although there may be fluctuations in the short term, the long-term trend is very clear: cryptocurrencies are transitioning from 'marginal assets' to 'mainstream allocations'.
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