Will American retirement funds boost Bitcoin and Ethereum to new heights?

Recently, the topic of whether China's pension funds are 'sufficient and can maintain value' has attracted much attention, while across the ocean in the United States, the pension sector is also in turmoil. Recently, Trump made a bold move by signing an executive order allowing American retirement accounts 401(k) to invest in alternative assets, including cryptocurrencies, in the future.

1. Why can 401(k) get involved in cryptocurrencies?

In the past, American 401(k) retirement accounts were like a 'stable funding pool,' with investment options limited to traditional assets such as stocks, bonds, and index funds. The executive order signed by Trump requires relevant regulatory agencies to review and relax the rules, incorporating alternative assets like cryptocurrencies, private equity, and real estate into the investment scope. This means that although direct investment in cryptocurrencies is not yet possible, the door has quietly opened.

2. 401(k) funds: Naturally a 'long-term accumulation tool'

Long-term lock-up: Funds generally cannot be withdrawn until after age 59 and a half; early withdrawals incur taxes and penalties, making them inherently unsuitable for short-term speculation.

Automatic investment: Funds are automatically deposited into the account with each paycheck, resulting in continuous contributions.

Low turnover rate: Unlike exchange wallets, funds may be held long-term after purchase, reducing the market's circulating chips. For scarce Bitcoin, this slow accumulation method is like 'dripping water wearing through stone,' with significant accumulation effects.

3. Is a long bull market about to unfold?

Funds from spot ETFs often flow in and out, such as the capital outflow from Ethereum's spot ETF earlier this year, which caused a significant drop in its price. In contrast, 401(k) funds are injected gradually, providing stable support to the market. As more 401(k) accounts start allocating to cryptocurrencies, with penetration rates increasing from 1% to 3% and then to 5%, a 'reservoir' for a slow bull market will gradually form.

In the future, market price volatility may decrease, but the central tendency is expected to rise steadily. Clearly, this may be the true starting point for a long bull market. #特朗普允许401(k)投资加密货币 #比特币流动性危机 #美联储比特币储备 #ETH巨鲸增持