When 'American retirement money' sets its sights on cryptocurrency, the whole market should wake up—this administrative order signed by Trump may be more explosive than the news of 10 institutions entering: **A staggering 9 trillion-dollar 401K retirement fund is finally allowed to invest in cryptocurrency!
First, understand: What exactly is a 401K? How powerful is the 'retirement money bag' for Americans?
Simply put, a 401K is the 'retirement security ace' for American workers. Since its inception in 1981, it has become the most mainstream retirement plan for private companies thanks to 'employer-employee joint savings + tax-advantaged benefits'.
How does the money come in? You contribute 1%-15% (not exceeding the limit) from your salary each month, and your employer will also 'match' a portion; for example, if you save 5%, the company might contribute an additional 3%, essentially 'free money'.
How is tax calculated? The money saved is not taxed, and the interest and dividends earned are also tax-exempt until you withdraw it at retirement, which means 'allowing the money to compound for a few years before paying a small amount of tax'.
How exaggerated is the scale? Currently, the total is about 9 trillion dollars, equivalent to the total market value of three A-shares. Previously, you could only invest in products limited to fund companies; you couldn't even buy individual stocks—now, cryptocurrencies have been included in the selectable range.
Key points: This policy relaxation hides three signals.
1. The 'legitimization' of cryptocurrency has taken another step forward.
As the most conservative 'retirement money', 401K has always served as a 'litmus test for financial compliance'. The shift from being viewed as a 'speculative tool' to being included in retirement fund options indicates a significant increase in the regulatory recognition of cryptocurrency. In the long term, this will attract more low-risk capital into the market.
2. 9 trillion won't 'rush in all at once', but the trend is irreversible.
Don't fantasize about 9 trillion flooding the market immediately—401K investment options are still determined by the fund companies partnered with employers, and ordinary workers can only choose within a limited range. However, this is a breakthrough from '0 to 1': once leading fund companies launch crypto-related products, subsequent capital will flow in slowly, like 'a frog in boiling water', becoming the 'slow variable engine' of a bull market.
3. A lesson for retail investors: Follow the 'smart money' for the long term.
Retirement funds value 'steady appreciation' the most. The assets they are willing to touch at least indicate that their long-term risks have been assessed by professional institutions. For retail investors, this is not a signal to 'go all in immediately', but a reminder: the crypto market is transitioning from being 'a playground for the few' to 'a pool of mainstream capital allocation', and the long-term logic has become more solid.
Let me add a few key details; understanding the rules prevents blind excitement.
The savings limit for 2025 has been raised: you can save up to $23,500 each year (an increase of $500 from last year), and employer contributions do not count towards this limit, meaning 'the retirement account has more firepower'.
Not everyone can just buy: the company must offer a 401K plan, which is unrelated to income level, but when choosing products, you can only select from the list of fund companies partnered with your employer; your personal choice does not count.
Money cannot be moved casually: withdrawing before age 59.5 incurs a 10% penalty, and after age 70.5, you must withdraw a portion each year (to force spending and stimulate consumption), unless faced with special circumstances like severe illness, disability, or unemployment—this means that the 401K funds entering the crypto market will be 'long-term locked funds', reducing short-term volatility.
This administrative order essentially hands the crypto market a 'long-term pass'. The entry of 9 trillion in retirement funds may not cause prices to surge like Elon Musk's tweets, but it opens a new water source for the pond—though the flow is slow, it can gradually raise the water level.
For ordinary investors, instead of getting caught up in whether 'prices will rise tomorrow', it's better to recognize a trend: when the most conservative money starts to allocate, the 'coming-of-age' for cryptocurrency may truly be on its way.
#特朗普家族加密项目 #比特币流动性危机 #美国加征关税 #ETH巨鲸增持 #特朗普允许401(k)投资加密货币
Keep an eye on A2Z ASR BIO BB ILV
