On Thursday evening Eastern Time, former President Trump signed a new executive order, officially authorizing 401(k) pension plans to allocate alternative assets including cryptocurrencies, instantly igniting the market.

What does this news mean?

Let me give you some background: 401(k) is one of the main retirement plans in the US, with a total scale of up to $8.7 trillion. Even if only 1% flows into the crypto market, it would be equivalent to an additional liquidity injection of more than 1.25 spot ETFs.

More importantly, the funds in these retirement accounts are extremely long-term and stable, able to remain unmoved for decades, which is a standard 'diamond hand'.

However, let's not rush to treat it as a positive development — although Trump signed the order, it still requires the SEC and the Labor Department to modify relevant regulatory details, which currently feels more like a first step. But this first step is enough to release a clear signal, adding a rocket booster to the bull market.

Market overview: Core assets are performing very standardly.

Bitcoin (#BTC): Has the third wave market started?

Bitcoin's recent performance is almost consistent with the 'third wave' described in wave theory, belonging to a typical accelerated upward segment.

  • The direction is basically correct, and short-term expectations remain for continued highs;

  • Operational suggestion: Control positions, accumulate in batches, which is currently the most comfortable rhythm.

Ethereum (#ETH): Is 3900 not the end, but a power accumulation zone?

In the past two weeks, Ethereum has tested the $3900 mark for the third time. Some are worried it is forming a top, but I tend to believe: this is building momentum for a breakout.

  • The daily trend remains good;

  • Although the pullback is deep, the bearish energy is gradually weakening;

  • The bulls are starting to increase, the Bollinger Bands are opening, indicating that the consolidation zone may be broken.

As long as the structure is not broken, crossing 4000 is just a matter of time. Moreover, the fund flow of spot ETFs has returned to positive growth, and it can even be seen that institutions prefer ETH over BTC.

Short-term attention: Today is Friday, according to the trend patterns of the past two weeks, BTC and ETH may respectively pull back to the 115500 and 3800 areas, pay attention to rhythm changes.

Altcoins: The main line of hotspots is clear, the market is entering a selection phase.

Current funds are clearly rotating around several highly compliant and clearly defined sectors:

  • L2 sector: OP, ARB, etc., are performing strongly;

  • RWA (Real World Assets): ONDO, MKR are favored;

  • AI sector: WLD, TAO have recent events catalyzing, showing significant highs;

  • Staking: ETHFI, LDO benefit from ETH's strength and rise synchronously.

The DeFi sector is slowly brewing a 'small summer on-chain':

  • Ordinary staking annualized yield reaches 3%;

  • Derivative staking can reach 10%;

  • The stablecoin pool has reached a maximum annualized return of 12%.

On-chain TVL continues to rise, indicating that funds are shifting from highly speculative PVP to stable yield staking and re-staking strategies.

Recent mindset and strategy sharing

To be honest, this wave of the market is seeing altcoins soar, many people are making a lot of money, while others, like myself, feel like they missed out on something. But I always adhere to my trading logic:

  • Missed out? Don't chase high prices blindly, wait for a pullback to buy core assets at a low;

  • Fully invested? Take profit on that portion, keep some position to cope with volatility;

  • Want to speculate? You should also focus on the main logical hotspots, don't charge in recklessly.

To be frank, the token I have been paying most attention to recently is PEPE on the ETH chain. Compared to directly chasing high ETH, the cost-performance ratio of PEPE this month is clearly higher. It just depends on whether you dare to hold it.

In summary:

This executive order signed by Trump is not the end, but a fuse. Once real money starts flowing in, the upper limit of the crypto bull market will be completely refreshed.

Future outlook:

August will likely still see fluctuations, but **the 'trend ignition point' has already been lit**. Now, it’s about finding the right position, keeping the rhythm, and waiting for your 'wave'.