- Trump signs executive order, enabling crypto in 401(k)s.
- BTC and ETH prices see significant surges.
- Over $1 billion in trader losses recorded.
Donald Trump’s recent executive order on July 23, 2025, opening 401(k) plans to digital assets, has impacted crypto markets, leading to notable fluctuations and over $1 billion in trader liquidations.
The policy shift underscores growing institutional interest in cryptocurrencies, potentially stabilizing market demand yet increasing volatility, as demonstrated by Bitcoin and Ethereum’s price surges and subsequent market corrections.
Main Article
Donald Trump’s recent executive order has sparked a surge in cryptocurrency prices, notably BTC and ETH, following a regulatory change allowing 401(k) investments in digital assets. The decision marks a significant policy shift in the U.S.
The order involves the coordination of the Department of Labor, Treasury, and SEC to pave the way for crypto inclusion in retirement plans. Market analysts observe that this move could mean a stable demand for cryptocurrencies.
The immediate effect was a price increase in Bitcoin and Ethereum, with experts noting that retirement market engagement could substantially impact the crypto landscape. Over $1 billion was lost through trader liquidations amid volatile conditions.
Financial implications include changes in the $8.7 trillion U.S. 401(k) market. As systematic rebalancing takes place, the capital flow could stabilize, potentially reducing extreme price swings. Industry insiders see a new wave of predictable demand. As James Butterfill, Head of Research at CoinShares, stated:
“This move effectively opens access to Bitcoin and other cryptocurrencies for retirement investors.”
The historical precedent of such executive orders shows potential for long-term growth in the crypto market. BTC and ETH maintain their function as core assets amid policy changes in the U.S., leading to major market movements.
Experts foresee future regulatory outcomes could enhance digital financial technology leadership globally. Historical trends suggest that similar orders have prompted surges in DeFi protocols and Layer 1 tokens, aligning with broader market sentiments.
