The cryptocurrency market experienced a strong bounce on Friday, bringing new life to investors after a series of gloomy days and prolonged pessimism.
Leading the recovery wave are familiar names: Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Solana (SOL), and XRP — all of which recorded significant gains.
Notably, the price of Bitcoin surpassed $116,000 as the U.S. dollar index (DXY) and the 10-year Treasury yield both weakened, creating momentum to restore confidence in the digital asset market.
Donald Trump's executive order allows cryptocurrency to be included in 401(k) retirement plans
President Donald Trump is reportedly set to sign an executive order allowing assets such as private equity, cryptocurrency, and real estate to be included in 401(k) retirement plans, according to sources from CNBC on August 7.
This move is seen as a significant boost for alternative assets, especially Bitcoin, gold, and private investments, opening up new access opportunities for millions of American workers.
According to data from the Investment Company Institute, as of the first quarter of 2025, Americans hold nearly $8.7 trillion in 401(k) accounts – a colossal figure reflecting the scale and potential of this market.
Large trust financial organizations like BlackRock – the world's leading asset management company – are actively researching the possibility of integrating Bitcoin and other cryptocurrencies into their investment portfolios. At the same time, Apollo Group and Empower – the second-largest retirement plan provider in the U.S. – also announced plans to allow users access to private assets in some accounts starting at the end of 2025.
A significant turning point occurred last May when the U.S. Department of Labor officially lifted guidelines from the Biden administration that had previously banned cryptocurrencies like Bitcoin from appearing in 401(k) plans.
Previously, the guidelines issued in 2022 cited risks related to price volatility, fraud, and an unclear legal environment to exclude cryptocurrencies from retirement investment portfolios. However, this conservative approach faced strong criticism from many Wall Street giants – who believe that digital assets are an essential part of the modern financial future.
The massive short positions being liquidated
According to data from CoinGlass, within just one hour, the market witnessed a wave of liquidations exceeding $120 million from short cryptocurrency positions, resulting in over 92,000 traders being 'wiped out' from their positions in the past 24 hours.
The total value of liquidated orders across the market reached $270 million. Dominating this were short positions with over $217 million, while long positions accounted for more than $55 million.
The altcoins most heavily impacted include ETH, SOL, XRP, DOGE, MYX, and ENA. Notably, tokens from the Solana and Ethereum ecosystems are the two groups facing the strongest liquidation pressure.
The sweeping liquidation of numerous short positions has become a crucial catalyst, contributing to the wave of price recovery across the market.
The largest single liquidation order during this volatility was for the ETHUSDT trading pair, valued at up to $34.28 million, executed on the HTX exchange.
The cryptocurrency market recovered following positive news
Bitcoin recorded a 2% increase after news emerged that some retirement plans would begin allowing investments in cryptocurrency-related assets – a significant step in legalizing and expanding the application scope of digital assets.
However, trust organizations will still adhere strictly to the 'prudent investment' principle as stipulated by ERISA, while maintaining rigorous risk assessment measures for cryptocurrencies, including strong price volatility, security risks, and legal risks – all of which are carefully weighed against the potential for long-term profitability.
Market analyst Michael van de Poppe stated that Bitcoin's recovery has created a ripple effect, leading to a strong breakout for many altcoins.
Ethereum recorded an outstanding increase of over 6%, reaching a peak of $3,852. Meanwhile, XRP, Solana (SOL), and Dogecoin (DOGE) also surged.
Specifically, XRP surged over 4%, hitting $3.07 – fluctuating in the range of $2.94 – $3.09 over the past 24 hours. Solana increased by 5% thanks to positive news, currently trading around $172.20. DOGE also followed the trend, jumping 7.53% and trading at $0.2142.
The bullish outlook continues with expectations of rate cuts
Experts predict that Bitcoin's upward trend may soon return, as the market anticipates that the U.S. Federal Reserve (Fed) will proceed with three rate cuts this year. According to the CME FedWatch forecasting platform, the likelihood of the Fed lowering rates by 25 basis points in September has now exceeded 91%.
Optimism is spreading strongly in the derivatives market: the total open contracts value of Bitcoin futures has increased by 6%, reaching $188.54 billion. Notably, the open contracts for BTC options also surged impressively, skyrocketing by 86% to $62.32 billion.