The inclusion of cryptocurrency in US retirement plans could mark a milestone for Bitcoin adoption and unlock billions of dollars in new capital, which could push the asset above $200,000 by the end of 2025, according to André Dragosch, head of European research at crypto asset manager Bitwise.
President Donald Trump paved the way for the inclusion of cryptocurrencies in US 401(k) retirement plans by signing an executive order on August 7, granting Americans access to digital assets through their retirement plans.
The inclusion of cryptocurrencies in 401(k) plans may be even more significant for the price of Bitcoin than the approval of Bitcoin exchange-traded funds (ETFs) in the United States in January 2024, Dragosch said.
This "bullish" development could be "bigger than the approval of the US Bitcoin ETF itself," indicating another $122 billion of new capital, assuming a modest portfolio allocation of 1%, Dragosch told Cointelegraph during the daily Chain Reaction X Spaces program on Monday, adding a price prediction just in case:
"The official prediction remains $200,000 by the end of the year."
"If we look at the 401(k) and defined contribution retirement plans in the US, they are huge," Dragosch said, adding that the 1% was a "relatively conservative" allocation estimate for the $12.2 trillion industry.
The inclusion of digital assets in retirement plans will allow 401(k) portfolio managers to invest in Bitcoin ETFs, which could push the price of Bitcoin to new all-time highs, showing another optimistic signal for Bitwise's Bitcoin price target of $200,000 by the end of 2025.