Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
US Retirement Plan Crypto Access May Drive Bitcoin Above $200,000

US Retirement Plan Crypto Access May Drive Bitcoin Above $200,000

BTCPEERS2025/08/19 16:10
By:Albert Morgan
US Retirement Plan Crypto Access May Drive Bitcoin Above $200,000 image 0

President Donald Trump signed an executive order on August 7, 2025, allowing Americans to invest their 401(k) retirement savings in cryptocurrencies and other alternative assets. According to Cointelegraph, this development could push Bitcoin above $200,000 by the end of 2025, based on analysis from André Dragosch, head of European research at crypto asset manager Bitwise.

The executive order grants 401(k) portfolio managers access to Bitcoin exchange-traded funds, potentially unlocking $122 billion in new capital assuming a modest 1% portfolio allocation. Dragosch told Cointelegraph during a Chain Reaction daily X spaces show that this "bullish" development may be "bigger than the US Bitcoin ETF approval itself." The $12.2 trillion defined-contribution retirement industry represents a massive pool of potential Bitcoin investment capital.

Dragosch maintained his official prediction of "$200,000 by the end of the year," citing the combination of Federal Reserve rate cuts and retirement plan adoption as dual drivers for Bitcoin's price appreciation.

Why This Development Could Transform Bitcoin Adoption

The inclusion of cryptocurrency in America's retirement accounts represents a potential watershed moment for Bitcoin adoption. CNBC reports that widespread inclusion of Bitcoin in retirement accounts has long been viewed as a "holy grail for crypto adoption" that would make cryptocurrency a mainstay of US financial infrastructure.

The retirement market currently holds $43 trillion in total assets, with $12.2 trillion specifically in 401(k) plans according to Investment Company Institute data from the first quarter of 2025. Galaxy CEO Michael Novogratz described this as "a monster pool of capital" that widens the aperture for crypto purchases and brings more people into the ecosystem.

Based on Bitwise's survey of financial advisers, most portfolio managers recommend 2.5% to 3% Bitcoin allocation for retirement plans rather than the conservative 1% estimate, suggesting potentially larger capital inflows. We reported in February that 15 US states are moving forward with plans for Bitcoin reserves, demonstrating growing institutional acceptance of Bitcoin as a strategic asset allocation.

Broader Industry Implications for Cryptocurrency Markets

The 401(k) crypto integration could reshape competitive dynamics within both retirement and cryptocurrency industries. Major retirement plan providers BlackRock, Fidelity, and Vanguard control significant market share, with BlackRock's iShares Bitcoin Trust holding $84 billion in assets and commanding 57.5% of Bitcoin ETF market share according to Cointelegraph.

McKinsey analysis shows the retirement industry approaching a transformation point, with providers seeking new revenue streams beyond traditional recordkeeping fees. The convergence of retirement and wealth management industries creates incentives for major providers to offer Bitcoin ETF exposure within their standard plans.

However, experts remain divided on implementation risks. CNBC notes that employers still face fiduciary duty under ERISA to act in employees' best interests, meaning rapid crypto adoption is not guaranteed. Traditional financial institutions worry about Bitcoin's volatility profile within retirement accounts designed for long-term stability rather than speculative trading.

The timing coincides with anticipated Federal Reserve interest rate cuts, with markets pricing an 83% probability of a 25 basis point reduction at the September 17 Federal Open Market Committee meeting. Lower interest rates historically benefit alternative assets like Bitcoin, potentially amplifying the impact of retirement plan capital inflows on cryptocurrency prices.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Google: Why We Want to Build Our Own Blockchain GCUL

This is more like a consortium blockchain dedicated to stablecoins.

BlockBeats2025/08/27 07:05
Google: Why We Want to Build Our Own Blockchain GCUL

In-depth Analysis of USD.AI: Backed by YZi Labs Investment, Enjoying Both Stable Returns and AI Dividends

USD.AI generates yields through AI hardware collateralization, filling the gap in computing resource financing.

BlockBeats2025/08/27 07:04
In-depth Analysis of USD.AI: Backed by YZi Labs Investment, Enjoying Both Stable Returns and AI Dividends

The Prophet Returning from the Cold

Chainlink has not replaced traditional financial systems; instead, they have built a translation layer that enables traditional financial systems to "speak the language of blockchain."

Block unicorn2025/08/27 06:52
The Prophet Returning from the Cold