Crypto Investors Celebrate: Trump’s New Executive Order Sends Bitcoin & Ethereum Soaring

Trump’s Executive Order Sends Bitcoin Soaring as 401(k) Retirement Plans Open to Crypto

Bitcoin Price Surge After Major Policy Shift

Bitcoin jumped over 2% on Thursday, pushing past $116,000, after President Donald Trump announced a new executive order that will make it easier for Americans to include cryptocurrencies like Bitcoin in their 401(k) retirement plans.

Ethereum also rallied, gaining 7% to reach around $3,800, according to Binance data. The surge wasn’t limited to individual coins—the total crypto market value rose to $3.9 trillion, per CoinGecko.

The move came alongside a short-lived boost in the stock market, with the S&P 500 ticking upward before dipping later in the morning.

What Trump’s Executive Order Means for Crypto Investors

Restoring a Reversed Policy

The order essentially restores a Trump-era policy from his first term, which allowed alternative assets like Bitcoin ETFs to be included in retirement accounts. President Joe Biden had rolled back that policy during his term.

Now, the U.S. Labor Department will be tasked with reassessing rules for retirement fund managers. These changes fall under the Employee Retirement Income Security Act of 1974 (ERISA), which governs investment standards for retirement and health plans.

Key Details of the Executive Order

• 401(k) Plans Can Include Alternative Assets – These assets may now cover private equity, Bitcoin ETFs, and potentially other cryptocurrencies.

• Multi-Agency Coordination – The Labor Department will work with the Treasury Department and the Securities and Exchange Commission (SEC) to align regulations.

• Potential for Sustained Demand – With $8.7 trillion in assets in U.S. 401(k) accounts (Q1 2025), the policy could significantly boost long-term crypto investment.

Expert Reactions: “Sustained, Long-Term Demand”

Ryan Rasmussen, Head of Research at Bitwise, called the move “another channel of sustained, long-term demand for Bitcoin that will bid the price higher.”

James Butterfill from CoinShares agreed, noting: “This move effectively opens access to Bitcoin and other cryptocurrencies for retirement investors.”

Jake Ostrovskis, an OTC trader at Wintermute, explained why 401(k) inflows could be a game-changer:

“Unlike retail investors, who chase momentum, or institutional traders seeking alpha, 401(k) participants maintain target allocations through systematic rebalancing—creating sustained, predictable demand flows.”

Why This Could Be a Game-Changer for Bitcoin

Massive Retirement Fund Market

The $8.7 trillion U.S. 401(k) market represents one of the largest investment pools in the world. Even a small percentage allocation to Bitcoin could lead to billions in inflows.

Predictable Investment Flows

Retirement accounts typically follow long-term, systematic investment strategies rather than short-term speculation. This could mean steady and consistent buying pressure on Bitcoin and other cryptocurrencies.

Restored Investor Confidence

After a brief dip in August following record highs in July, this policy news has restored confidence among crypto investors. The change may set the stage for another major bull run.

Market Impact So Far

• Bitcoin: +2% in 24 hours, breaking $116,000

• Ethereum: +7%, reaching $3,800

• Total Crypto Market Cap: $3.9 trillion, up nearly 2%

• Stock Market: Early gains for the S&P 500 before a midday drop

The Bigger Picture: Crypto in Mainstream Finance

Trump’s move is part of a growing global trend where digital assets are merging with traditional finance. Allowing Bitcoin in retirement accounts is a major step toward mainstream adoption, giving millions of Americans an easy way to invest in crypto without directly trading it themselves.

Financial experts believe this could also lead to:

• More Bitcoin ETF launches in the U.S.

• Increased regulatory clarity for crypto investments

• Higher long-term price stability

What’s Next for Bitcoin and Ethereum Prices?

While the immediate surge is clear, analysts suggest the real impact will unfold over months and years as retirement accounts begin integrating Bitcoin allocations. If even 1% of the $8.7 trillion 401(k) market moves into crypto, it could represent over $87 billion in demand—a significant push for prices.

For now, traders are watching closely to see if Bitcoin can hold above the $116,000 mark and push toward new all-time highs in the coming weeks.

Trump’s new executive order could be one of the most bullish developments in crypto history. By opening retirement plans to Bitcoin, the policy creates a steady, long-term investment channel that could reshape the market’s future.

Disclaimer: The above press release has been provided by a third party. We do not verify or endorse the content and will not be responsible for any inaccuracies, claims, or damages arising from the same.