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Today's most lively news is that President Trump will sign an executive order tonight, allowing 401K investments in cryptocurrencies, private equity, and real estate. After the news broke, Bitcoin surged past 116,000, and Ethereum even broke the upper limit of 3,800. So what exactly is a 401K, and how much impact can it bring?

401K, fully known as Section 401(k) Retirement Plan, is a retirement plan provided by American companies for their employees.

The American pension system is divided into three layers:
The first layer is the federal social security fund, which is about 28 trillion and can only invest in government bonds; this law will have no impact on it.
The second layer is the 401K, the employer retirement plan, which has a scale of about 12 trillion and will directly benefit from it.
Currently, the proportion of aggressive assets (such as private equity and hedge funds) in 401K allocation is less than 5%.

If 1% is allocated to cryptocurrency, an additional 120 billion funds will be introduced, and the price of Bitcoin will rise by 6,000.

The third layer is the employee's personal pension, which is 16 trillion. This part cannot be mandated, and it has already allowed cryptocurrency investments, but the 401(k) policy may promote market trends.

Additionally, the United States also has university funds, state pensions, private trusts, sovereign wealth funds, and other evergreen funds, with a combined scale of 20-30 trillion.

If all allocate an additional 1% proportion, the incremental funds for Bitcoin can increase to 300-500 billion, and the price may rise by 15,000-25,000, reaching around 150,000.

Of course, these are all assumptions. One bite at a time is needed; looking at the long term is optimistic, but it doesn't mean it will soar tomorrow; instead, it is to recharge everyone's faith! $BTC $ETH #特朗普允许401(k)投资加密货币