In China, the adequacy and preservation of value of pensions has sparked widespread concern, while the pension sector in the United States is also experiencing ongoing turbulence. Trump signed an executive order allowing American 401(k) retirement accounts to invest in alternative assets such as cryptocurrencies in the future.
Previously, investments in 401(k) retirement accounts were limited to traditional assets like stocks and bonds. Now, the executive order requires regulatory agencies to review and relax rules, opening the door for cryptocurrency investments.
401(k) funds have unique characteristics; they typically cannot be accessed until after age 59 and a half, and early withdrawals face taxes and penalties. Additionally, they are automatically invested from wages, bought and held long-term, resulting in low turnover. This characteristic makes them a "long-term accumulation tool," and for the scarce Bitcoin, the slow accumulation effect is significant.
Unlike spot ETF funds that cause price fluctuations with their entry and exit, 401(k) funds are injected gradually. As more 401(k) plans allocate to cryptocurrencies, an increase in penetration rate is expected to form stable support, reduce market price volatility, steadily push the price center upward, or herald the beginning of a long bull market for cryptocurrencies.
