Bitcoin Soars to $116.5K Amid Trump's Executive Order on Cryptocurrencies in 401(k)
Trump's Order Stimulates Crypto Market Growth
On August 8, 2025, the price of Bitcoin reached $116,570.2, increasing by 1.7% in a day, after U.S. President Donald Trump signed an executive order allowing the use of cryptocurrencies in 401(k) retirement accounts. The document provides access to alternative assets, including Bitcoin, for pension fund managers, which could attract significant capital to the crypto market. The order aims to reduce regulatory barriers, which, according to Trump, limited the investment returns of American pensioners. However, experts warn that the high volatility of cryptocurrencies makes them a risky choice for long-term savings.
Altcoins Surpass Bitcoin
The altcoin market demonstrated more significant growth. Ethereum rose by 5.6% to $3,902.01, approaching the historical maximum of $4,000 reached in 2021, thanks to increased corporate investments in this cryptocurrency. XRP grew by 10.5% to $3.3149 after the settlement of a legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC), facilitated by Trump's appointment of crypto-friendly officials. Cardano increased by 7.1%, Solana by 3%, and Dogecoin by 7.1%. The memecoin $TRUMP also increased by 3.1%.
Growth Limitations and Market Risks
Despite the positive news, Bitcoin's growth remains unstable due to profit-taking after July's highs and reduced risk appetite amid new U.S. trade tariffs. Spot Bitcoin ETFs have seen capital outflow for the fourth day in a row, limiting potential further growth. Global economic factors, including tariff concerns, also hold back investors.
Forecasts and the Significance of the Order
Trump's order aligns with his policy of supporting the crypto industry, including creating a strategic Bitcoin reserve and easing regulations. This strengthens the U.S.'s position as a leader in the crypto market, but critics highlight the risks associated with the volatility of digital assets. Analysts expect that capital inflow into cryptocurrencies through 401(k) could drive Bitcoin to new heights, but the current market instability requires caution from investors.