Bitcoin increased by 1.82% on August 8, trading at $116,613.53, supported by developments from Washington and inflows from institutions. Daily trading volume rose to $65.5 billion.
President Donald Trump signed an executive order allowing retirement funds to include Bitcoin, Ethereum, and XRP. These funds control over $9 trillion in assets. While a complete shift to Bitcoin is unlikely, even a reallocation of 0.5% could bring about $45 billion into the market.
The executive order outlines that the combination of excessive regulation and encouraging lawsuits from opportunistic lawyers has stifled investment innovation. My administration will ease the regulatory burden and litigation risks that are hindering American workers' retirement accounts from achieving competitive returns and the necessary asset diversification to ensure a comfortable, decent retirement.
Bitcoin ETF Inflows and Corporate Bonds Boost Confidence
Bitcoin prices continue to be supported far beyond the executive order. Spot Bitcoin ETFs have seen total inflows of $54.02 billion since 2024, indicating steady investment demand. Institutions are also continuing to add digital assets into treasury bonds. Over 100 companies have bought 961,760 BTC worth $112 billion.
At the same time, companies are also increasing investments in other digital assets like Ethereum, Solana, and Binance Coin. This trend reflects a larger shift in how asset allocation is being approached by major companies.
The Federal Reserve's view on interest rates is also leaning towards Bitcoin. After the weaker-than-expected non-farm payroll report, which only added 73,000 new jobs, expectations for a policy adjustment are emerging, with Federal Reserve officials, including Lisa Cook, Neel Kashkari, and Christopher Waller, showing openness to cutting interest rates.
Polymarket is indicating a 79% chance that the Fed will cut interest rates in the next meeting, a scenario often seen as favorable for risk assets like Bitcoin.
The Technical Strength and Outlook of the Analyst Shaping the Next Target
Bitcoin continues to be within the bullish flag pattern established since late July. A breakout above $117,350 will help the price surpass the price channel toward the previous high of $123,255. If the upward momentum continues, the next resistance levels could be near $126,981 and $131,574.
Support levels remain stable around $113,154, the region where the 50-day moving average intersects with the bullish trend line from April. The Fibonacci retracement level of 0.382 at $113,682 is also favorable for buyers, giving them an opportunity to enter.
Buyers looking for entry opportunities will wait for confirmation above $117,350 with high trading volume. If this level is broken, prices will strengthen to continue rising. However, a breakdown at $113,150 would target prices towards $110,725 and $107,768. According to a trader on X, Q4 could be the kickoff for Bitcoin to exceed the $250,000 mark by 2025.
Mike Novogratz, CEO of Galaxy Digital, describes Trump's executive order as a "milestone" in connecting the traditional financial world with digital assets. Novogratz has previously predicted that Bitcoin could surpass gold and soar to $1 million per coin, thanks to institutional demand and a shift in investor sentiment.