The inclusion of digital assets in 401(k) retirement plans in the United States could unlock tens of billions of USD in new capital flow, a major impetus for Bitcoin and DeFi.
Despite market volatility, moves like 401(k) opening up to digital assets, SPACs targeting DeFi, and the growth of synthetic stablecoins are shaping the next cycle, but they also come with risks of manipulation and depeg.
MAIN CONTENT
401(k) in the United States could trigger a capital flow of 122 billion USD with a 1% allocation, reinforcing the Bitcoin target of 200,000 USD according to Bitwise.
Onchain investigation links YZY hunting wallets with LIBRA, suspecting insider trading worth 23 million USD.
DeFi accelerates: 250 million USD SPAC targets DeFi, Tether appoints a US strategist, Ethena surpasses 500 million USD in revenue, USDe's market cap grows significantly.
Why could the US 401(k) push Bitcoin to 200,000 USD?
Bitwise believes that bringing digital assets into 401(k) marks a milestone in institutional acceptance, potentially pushing Bitcoin to 200,000 USD in the next phase. The scale of 401(k) and defined contribution plans in the US reaches 12.2 trillion USD, so even a small allocation can have a significant impact, according to André Dragosch, Head of European Research at Bitwise, sharing with Cointelegraph.
Dragosch argues that this impact could be greater than the approval of a spot Bitcoin ETF in January 2024. When digital assets are allowed in 401(k)s, managers may buy Bitcoin ETFs, supporting prices to reach new highs. Despite last week's market correction, he remains optimistic due to sustainable capital flow foundations from pensions.
How much new capital does a 1% allocation equate to?
With 12.2 trillion USD in 401(k) assets and defined contribution plans, a 1% allocation could equate to about 122 billion USD, according to Bitwise. This is enough to significantly impact liquidity depth and Bitcoin prices.
Dragosch calls 1% a "conservative" level, emphasizing that the US retirement market is "very large." If a significant portion is allocated to Bitcoin ETFs, net buying demand will support an upward trend, despite short-term volatility.
When could Bitcoin reach 200,000 USD?
Dragosch sets a target of 200,000 USD by the end of the year in a share on Cointelegraph's Chain Reaction X Spaces, while Bitwise sees 401(k) as a key driver by the end of 2025.
The timeline depends on the speed of 401(k) integration, the operational framework of the plan provider, and the investor's risk appetite. While timing may vary, projections focus on pension capital flows rather than just spot ETFs.
"The official forecast remains 200,000 USD by the end of the year."
- André Dragosch, Head of European Research, Bitwise, Chain Reaction Daily X Spaces, according to Cointelegraph (Monday)
What does President Donald Trump's executive order regarding 401(k) mean?
According to Cointelegraph, President Donald Trump signed an executive order on August 7, paving the way for Americans to access digital assets through 401(k) retirement plans. This is a positive policy signal, promoting the legalization of Bitcoin access within retirement frameworks.
Clear policies help plan managers confidently integrate compliant digital asset products like ETFs. With a more favorable legal framework, recurring capital from pensions could become a long-term buying force.
How are businesses and whales shifting between Bitcoin and Ether?
Some listed companies continue to add Bitcoin treasury; KindlyMD makes its first investment of 679 million USD. Conversely, some big investors are selling Bitcoin to shift to an Ether position.
On Thursday, a whale sent 189 million USD in BTC to the decentralized exchange Hyperliquid, opening a 295 million USD perpetual long derivatives position and buying 240 million USD in spot ETH. The capital flow between BTC and ETH shows a flexible strategy based on cycle expectations and yields.
What is the connection between the YZY wallet and the suspicion of withdrawing 21 million USD from LIBRA?
Anonymous onchain analyst Dethective links the wallet hunting Kanye West-themed token, YZY, with the group of wallets behind LIBRA, suggesting the same insider trading operation worth tens of millions.
According to a series of posts on X, the YZY wallet bought 250,000 USD tokens at 0.20 USD, below market prices, taking over 1 million USD in profits within minutes and transferring back to the treasury wallet. This wallet also received large amounts from the wallet linked to the LIBRA launch six months ago. Two "Libra snipers" withdrew a total of 21 million USD; cumulatively YZY and LIBRA approached 23 million USD, after which the money was transferred to Kamino or Binance.
"We can certainly say this is someone with insider knowledge. The evidence is that he is not hunting any coins other than YZY and LIBRA and has prepared a very large scale."
- Dethective, onchain analyst (pseudonym), series of posts on X (Thursday), source: @dethective
What sector is Chamath Palihapitiya's 250 million USD SPAC targeting?
Early Bitcoin investor, billionaire Chamath Palihapitiya files to raise 250 million USD for the blank check company American Exceptionalism Acquisition Corp A, targeting DeFi, AI, energy, and defense.
According to the S-1 filing submitted to the US Securities and Exchange Commission, the CEO is Steven Trieu, and Palihapitiya serves as Chairman. The offering is expected to include 25 million shares, priced at 10 USD, with the ticker AEXA on the NYSE. The focus is on bridging solutions between traditional finance and blockchain, prioritizing practical applications of DeFi.
Why do SPACs emphasize DeFi over Bitcoin?
The S-1 filing argues that the next phase of development is integrating TradFi with DeFi, rather than focusing solely on Bitcoin as an inflation hedge. This is an application-oriented approach, aimed at infrastructure and capital markets.
"Although Mr. Palihapitiya has long supported Bitcoin as an inflation hedge and an alternative to fiat, we believe the next phase is to enhance integration between traditional finance and DeFi."
- American Exceptionalism Acquisition Corp A, S-1 registration, US Securities and Exchange Commission (Monday), source: SEC
What does Tether's appointment of Bo Hines mean?
Tether hires former Crypto Council White House Executive Bo Hines as a digital asset and US market strategic advisor to strengthen its presence in the world's largest economy.
Hines previously served in the Donald Trump administration, participating in the digital asset innovation framework and standards for stablecoin issuers. Tether stated he would coordinate strategy, build relationships with policymakers and industry partners. Tether Investments has reinvested nearly 5 billion USD into the US economy, and this move is expected to reinforce that commitment.
Ethena surpasses 500 million USD in accumulated revenue: why are synthetic stablecoins accelerating?
Ethena Labs reports that the Ethena protocol has generated over 500 million USD in accumulated revenue; last week's revenue reached 13.4 million USD. Revenue growth is attributed to capital flows into USDe and favorable market conditions for the delta-neutral hedging reserve model.
USDe supply reaches a historic peak of 11.7 billion USD. According to DefiLlama, USDe is the third-largest stablecoin in the market and the largest in the synthetic stablecoin group. USDe's market cap increased by 86.6% last month, while Sky Dollar (USDS) grew by 14% and Falcon USD (USDf) by 89.4%.
Synthetic stablecoins: what are the benefits and risks?
Collateralized synthetic stablecoins do not use physical assets, so transaction costs may be lower, and scaling can be rapid. However, the risk of losing peg and instability in hedging models can lead to significant losses during extreme market volatility.
Investors need to monitor collateral components, hedging mechanisms, liquidity, and transparent onchain data. The increase in market share of USDe, USDS, USDf reflects demand for yield, but requires tight risk governance.
Synthetic Stablecoin Market Cap/Supply 1-Month Volatility Notes Source Ethena USDe 11.7 billion USD (supply) +86.6% Largest in synthetic group; protocol revenue >500 million USD Ethena Labs; DefiLlama Sky Dollar (USDS) Not specified +14% Stablecoin upgraded from DAI in the Sky ecosystem DefiLlama Falcon USD (USDf) Not specified +89.4% Synthetic USD issued by Falcon Finance DefiLlama
What happened in DeFi last week?
Data from Cointelegraph Markets Pro and TradingView shows that most of the top 100 cryptocurrencies by market cap declined last week. PUMP dropped over 22%, SPX fell more than 18%.
DeFi TVL adjusts according to market prices. In this context, macro stories like 401(k), SPAC targeting DeFi, and strategic personnel upgrades at major institutions become anchors for medium to long-term expectations rather than short-term price drivers.
Frequently Asked Questions
Does a 1% allocation of 401(k) into Bitcoin really make a difference?
Yes. With the scale of 12.2 trillion USD in 401(k) and defined contribution plans, 1% equates to about 122 billion USD, enough to impact liquidity and prices, according to Bitwise and Cointelegraph.
Why are there suspicions of insider trading with YZY and LIBRA?
Dethective points to a wallet buying YZY at 0.20 USD on a large scale, taking profits quickly and relating to the LIBRA wallet, withdrawing nearly 23 million USD. The model targeting only YZY and LIBRA is a red flag.
What impact will SPAC AEXA have on DeFi?
If successfully listed and merged with the right target, the 250 million USD capital could boost the DeFi company, especially solutions connecting TradFi–DeFi, according to the S-1 filing submitted to the SEC.
What does Tether's appointment of Bo Hines mean?
This is a move to reinforce the strategy of penetrating the US market, increasing policy dialogue and implementing domestic infrastructure investments, according to a statement sent to Cointelegraph.
Are synthetic stablecoins safe?
They have cost and speed advantages, but risks of depeg and hedging models. It is necessary to evaluate reserves, governance mechanisms, and onchain liquidity; DefiLlama data helps monitor objectively.
Source: https://tintucbitcoin.com/quy-huu-my-day-bitcoin-len-200k/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news in the cryptocurrency market and not miss any important information!
