Bitcoin News Today: Bitcoin Surges Past $117,500 as Trump Signs 401(k) Crypto Order

Bitcoin surged past $117,500 on August 7, 2025, reversing a recent low of $114,278, driven by the announcement that U.S. President Donald Trump had signed an executive order allowing cryptocurrencies to be included in 401(k) retirement plans [1]. The move marks a significant regulatory shift, signaling that crypto assets may soon be integrated into mainstream financial products. The Department of Labor is now tasked with revisiting its fiduciary guidelines to clarify how ERISA-governed plans can include alternative investments like Bitcoin [1].

The executive order also mandates collaboration between the Department of Labor, the Treasury Department, and the Securities and Exchange Commission (SEC) to assess whether broader regulatory changes are necessary to support the inclusion of crypto in retirement accounts [1]. The SEC has been specifically instructed to revise its rules to facilitate this transition, highlighting a coordinated effort to modernize retirement investment options for American workers [1].

White House officials emphasized that the initiative is part of a broader strategy to make the U.S. the “crypto capital of the world” by leveraging digital assets to drive economic growth and technological leadership [1]. The White House fact sheet noted that alternative assets, including digital currencies, private equity, and real estate, offer diversification benefits and the potential for strong returns [1].

Mike Novogratz, CEO of Galaxy Digital, highlighted the potential impact of the executive order, calling it a gateway for a “monster pool of capital” to enter the crypto space [1]. He noted that “tons of money” are expected to flow into Bitcoin and other digital assets as a result of the policy shift [1]. Ryan Rasmussen, Head of Research at Bitwise, provided a projection of how much capital could flow into Bitcoin if it captured even a small percentage of the $8 trillion 401(k) market, ranging from $80 billion for 1% to $800 billion for 10% [1].

Institutional demand for Bitcoin has already been surging. In 2023, institutions purchased 913,006 BTC, compared to just 217,771 BTC mined. By 2025, institutional buying has only accelerated, with 545,579 BTC acquired so far this year against 97,082 BTC mined [1]. According to Blockware, the number of publicly traded companies holding Bitcoin on their balance sheets has grown from 43 in 2023 to over 160 in 2025, reflecting a broader institutional acceptance of the asset class [1].

Corporate entities like Nakamoto and Twenty One Capital are at the forefront of this corporate Bitcoin accumulation trend. Nakamoto, which is in the process of merging with KindlyMD, has raised $763 million to purchase BTC for its reserves. Twenty One Capital already holds 43,514 BTC, ranking it among the top corporate Bitcoin holders globally [1].

The White House’s move comes at a time of heightened political and regulatory focus on crypto assets. The Trump administration has criticized what it calls “debanking” — a term used to describe banks’ reluctance to serve crypto-related businesses — and the new executive order is seen as an effort to address those systemic barriers [1]. With the SEC and other regulators now tasked with updating their rules, the crypto sector is poised for further regulatory clarity and institutional integration [1].

Sources:

[1] Bitcoin Magazine (https://bitcoinmagazine.com/markets/bitcoin-surges-to-117k-as-trump-signs-401k-crypto-order-plans)