Trump's Executive Order on 401(k) Could Bring Billions of USD into Bitcoin and Ethereum

Analysts believe that President Donald Trump's executive order allowing Americans to add cryptocurrency to their 401(k) retirement accounts will be a major catalyst for the market. This move could attract billions of USD into digital assets.

Stable Cash Flow, Building a Solid Foundation

According to Tom Dunleavy from Varys Capital, allocating a small portion of the regular contributions to account #401K to cryptocurrency could bring billions of USD into the market in the coming years. This increase in stable cash flow will not only drive prices up but also create a more stable price foundation for digital assets.

Ryan Rasmussen, Head of Research at #Bitwise , estimates that if cryptocurrency represents 1% of the assets in 401(k), the market will see an additional 125 billion USD in new capital. This figure could rise to 625 billion USD if the ratio reaches 5%.

Bitcoin and Ethereum Stand to Benefit the Most

Analysts suggest that Bitcoin and Ethereum will be the two assets that benefit the most. Both already have existing products #etf , making it easier for 401(k) plan providers to integrate. This information immediately pushed Bitcoin's price up nearly 1% and Ethereum's price up nearly 4% in the last 24 hours. In the future, other digital assets like Solana may also benefit if their corresponding ETF funds are approved.

This executive order is not just positive short-term news but also a strong signal for the legitimization of cryptocurrency, reinforcing the belief that digital assets will play an increasingly important role in the U.S. financial system.