Bitcoin News Today: Trump Executive Order Adds Bitcoin to 401(k) Options Boosting Crypto Demand

Bitcoin’s inclusion in U.S. retirement plans is becoming a tangible reality as President Donald Trump is set to sign an executive order allowing cryptocurrencies and alternative assets into 401(k) accounts. The move is expected to significantly boost demand for digital assets and reshape the retirement investment landscape. This development has already triggered a surge in crypto markets, with Bitcoin prices rising above $116,000 as investors anticipate long-term implications of the policy [5].

The executive order expands investment options beyond traditional assets to include real estate, private equity, and digital assets like Bitcoin. The U.S. retirement market is vast, with $12.22 trillion in total value as of early 2025, of which 401(k) plans account for $8.7 trillion [1]. With younger investors, aged 20 to 39, making up 40% of 401(k) participants and showing strong interest in crypto, the inclusion of digital assets could lead to a structural transformation in retirement portfolios.

Analysts suggest that if only 1% of the 70 million 401(k) accounts allocate funds to Bitcoin, it could generate approximately $90 billion in new capital. At a 5% adoption rate, the figure could rise to nearly $445 billion [1]. This shift is seen as a major win for the crypto industry, marking a step toward mainstream adoption and potentially accelerating institutional interest, especially as Bitcoin ETFs attract record inflows [5]. Several crypto firms have already begun developing products to support these investments, signaling growing readiness within the financial ecosystem to accommodate digital assets in retirement planning [4].

The inclusion of cryptocurrencies in 401(k) accounts could lead to broader diversification of retirement portfolios and greater stability in the crypto market. It also raises the possibility of a more mature investor base entering the space through structured and regulated channels, potentially helping to mitigate the volatility associated with speculative trading. The timing of the announcement aligns with broader efforts by the administration to restructure trade and tax policies, highlighting a more expansive and forward-looking economic strategy amid rising inflation [1].

While the exact implementation and regulatory framework remain to be defined, the announcement has already demonstrated a clear impact on market sentiment. Investors and financial experts are now closely watching for further clarity on how the policy will be rolled out and how retirement platforms will adapt to accommodate these new asset classes [3]. The move could ultimately redefine the landscape of retirement investing, making digital assets a standard component of long-term financial planning in the U.S. and beyond.

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Source:

[1] https://m.economictimes.com/crypto-news-today-live-07-aug-2025/liveblog/123149180.cms

[2] https://www.aol.com/trump-breaks-day-one-promise-090051401.html

[3] https://www.juliusbaer.com/en/insights/market-insights/cio-views/cio-views-the-trade-war-that-will-not-happen/

[4] https://cryptonews.com/

[5] https://cryptodnes.bg/en/news/bitcoin/

[6] https://www.marketreportanalytics.com/news/article/70117