The Bitcoin and Ethereum prices are rallying today, recording notable gains in the process. This follows Donald Trump’s signing of two executive orders that could significantly boost the crypto industry.
Why The Bitcoin and Ethereum Prices Are Rallying Today
The Bitcoin and Ethereum prices are up today, with gains of almost 2% and 6%, respectively. This has come on the back of Trump’s signing of an executive order that enables 401(K)s to invest in cryptocurrencies as an alternative asset class. These 401(K)s are retirement savings accounts and are a $12 trillion market.
This executive order opens the crypto industry to a massive market, in which over 90 million Americans participate. This represents a huge boost for the Bitcoin and Ethereum prices, which could witness new liquidity from these 401(K)s. Market expert Tom Dunleavy described the retirement savings market news as “way way” bigger news than the crypto ETFs.
He noted that every two weeks, Americans, through these 401(K)s, route a portion of their paychecks into purchasing a mixture of stocks and bonds. He further remarked that this has been a huge driver of the equity market run and resilience over the past 20 years. These retirement accounts have acted as a constant background bid for these assets and could now have the same impact on crypto assets, which is bullish for the Bitcoin and Ethereum prices.
Dunleavy further explained that a 1% portfolio allocation to crypto from these 401(K)s brings $120 billion in new flows, 3% allocation brings $360 billion in new flows. Meanwhile, a 5% allocation brings about $600 billion in new flows. He added that these aren’t one-time flows, since these Americans will keep buying once they set how much they want to allocate to crypto.
A positive is the fact that these accounts add significant demand for Bitcoin and Ethereum without sell pressure like the ETFs, which sometimes record massive outflows. As such, implications of the 401(K)s for crypto have sparked a bullish sentiment towards the BTC and ETH prices.
Trump Also Signs Order Ending Operation Chokepoint
Trump also signed an executive order that guarantees fair banking for all Americans, including those in the crypto industry. This ends Operation Chokepoint, which is bullish for the Bitcoin and Ethereum prices and has contributed to the rally today. The document referenced Operation Chokepoint and how it was a systematic means by which Federal regulators pushed banks to minimize their involvement with individuals and companies disfavored by regulators.
The executive order ensures that investors can easily use their bank accounts as an on-ramp to access crypto assets. It also enables off-ramp, allowing these investors to convert their crypto to fiat easily. Most importantly, it could drive more liquidity into the market since more investors will be able to invest in Bitcoin, Ethereum, and other crypto assets easily.
