Ethereum News Today: Trump's 401(k) Order Drives Crypto Market to $4.02 Trillion Record High

The global crypto market has reached a record valuation of $4.02 trillion, driven by renewed investor confidence and regulatory developments in the United States. The surge follows the signing of an executive order by U.S. President Donald Trump, permitting 401(k) retirement plans to include digital assets, marking a pivotal shift in the institutionalization of crypto. This move has been widely seen as a catalyst for mainstream adoption and has provided a significant tailwind to crypto prices [1].

Bitcoin, the leading cryptocurrency, is approaching a new all-time high, supported by renewed inflows into spot ETFs and a broader risk-on sentiment. Weaker-than-expected U.S. economic data has also raised expectations of a 25 basis-point rate cut by the Federal Reserve at its upcoming September meeting, further bolstering market optimism. Analysts highlight that this regulatory shift aligns with broader investor expectations for more accommodative monetary policy, which could support continued gains [1].

Simon Peters, a crypto analyst at eToro, emphasized that Trump’s order represents a pivotal moment for mainstream investor participation and adds strong momentum to the market. With the U.S. market now playing a more prominent role in crypto adoption, institutional investors and retail participants are reassessing their exposure to digital assets. The development also signals increased legitimacy for crypto as an asset class and may encourage further innovation and investment across the sector [1].

Looking ahead, the market will closely monitor key U.S. economic indicators this week, including the Consumer Price Index (CPI), Producer Price Index (PPI), and retail sales figures. If inflation data and retail sales come in below expectations, this could reinforce investor expectations for aggressive rate cuts by the Fed, potentially pushing crypto prices to new heights. A more dovish central bank stance could also encourage additional inflows into riskier assets such as crypto, further amplifying the market's upward trajectory [1].

Among the biggest movers in the crypto space, $LDO surged 60% over the past week, reflecting continued bullish momentum in the Ethereum ecosystem. Lido, a decentralized autonomous organization that simplifies staking on the Ethereum network, has seen growing interest as investors seek yield opportunities. Other Ethereum-related tokens, such as AERO, $PENDLE, and $LINK, also posted gains of 52%, 33%, and 32%, respectively [1].

In regulatory news, the U.S. Securities and Exchange Commission and Ripple Labs filed a joint dismissal of appeals, effectively ending their five-year legal battle. This outcome was met with a 11% rally in $XRP, which is now trading at $3.234. Meanwhile, SharpLink Gaming announced a $200 million capital raise to expand its Ethereum treasury, adding to a growing trend of publicly listed companies adopting crypto as a reserve asset. The company, which recently appointed Ethereum co-founder Joseph Lubin to its board, now holds over 521,939 ETH valued at more than $2.03 billion [1].

These developments highlight the growing integration of crypto into traditional finance and underscore the potential for further adoption in the coming months. As regulatory clarity improves and institutional demand increases, digital assets are likely to play an increasingly prominent role in global financial markets.

Sources:

[1] Crypto Market Capitalisation Hits Record $4 Trillion as Trump Opens 401(k)s to Digital Assets

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