Trump greenlights crypto in 401(k)s, dismantling Biden-era safeguards
The post Trump greenlights crypto in 401(k)s, dismantling Biden-era safeguards appeared on BitcoinEthereumNews.com. Trump’s 401(k) crypto move could fuel more demand for BTC than ETFs. Glassnode projected the asset may eye $120K as profit-taking activities remained subdued. The Trump administration has relaxed a Biden-era guidance that barred retirement plans, 401(k), from investing in Bitcoin [BTC] and other cryptocurrencies. In a statement on the 28th of May, the Department of Labor rescinded the 2022 directive that warned of ‘extreme care’ before including crypto into 401(k) investment plans. However, the agency clarified that the U-turn doesn’t mean an endorsement of digital assets but a neutral stance. New demand for BTC? Most ETF analysts and asset managers viewed the update as a new massive demand angle for BTC. Bitwise Europe head of research, Angre Dragosch, said, “This was by far the bigger news today. Approximately $8.9 trillion are managed in 401k plans in the US. Bitcoin demand shock incoming.” For his part, Ryan Rasmussen, another Bitwise top analyst, noted that a 1% demand from 401ks could outpace ETF inflows. “If just 1% of the $8 trillion in 401k funds flows into Bitcoin, that’s $80 billion of new demand, and 2x more than what’s flowed into Bitcoin ETFs.” For perspective, BTC doubled from $36K to $72K in the Q1 2024 after U.S. spot ETFs debuted. Overall, the asset has rallied nearly 180% to over $110K since early 2024. But it has briefly retraced to $107K at press time. BTC to eye $120K, says Glassnode However, on-chain signals suggested that BTC may eye $120K, according to Glassnode. In its weekly on-chain report on 28 May, the firm said, “In the event of further upside, the $120k level appears as a key zone of interest, with sell-side pressure expected to accelerate in and around this zone based on on-chain price models intersected in prior cycles.” Source: Glassnode The firm’s…
The post Trump greenlights crypto in 401(k)s, dismantling Biden-era safeguards appeared on BitcoinEthereumNews.com.
Trump’s 401(k) crypto move could fuel more demand for BTC than ETFs. Glassnode projected the asset may eye $120K as profit-taking activities remained subdued. The Trump administration has relaxed a Biden-era guidance that barred retirement plans, 401(k), from investing in Bitcoin [BTC] and other cryptocurrencies. In a statement on the 28th of May, the Department of Labor rescinded the 2022 directive that warned of ‘extreme care’ before including crypto into 401(k) investment plans. However, the agency clarified that the U-turn doesn’t mean an endorsement of digital assets but a neutral stance. New demand for BTC? Most ETF analysts and asset managers viewed the update as a new massive demand angle for BTC. Bitwise Europe head of research, Angre Dragosch, said, “This was by far the bigger news today. Approximately $8.9 trillion are managed in 401k plans in the US. Bitcoin demand shock incoming.” For his part, Ryan Rasmussen, another Bitwise top analyst, noted that a 1% demand from 401ks could outpace ETF inflows. “If just 1% of the $8 trillion in 401k funds flows into Bitcoin, that’s $80 billion of new demand, and 2x more than what’s flowed into Bitcoin ETFs.” For perspective, BTC doubled from $36K to $72K in the Q1 2024 after U.S. spot ETFs debuted. Overall, the asset has rallied nearly 180% to over $110K since early 2024. But it has briefly retraced to $107K at press time. BTC to eye $120K, says Glassnode However, on-chain signals suggested that BTC may eye $120K, according to Glassnode. In its weekly on-chain report on 28 May, the firm said, “In the event of further upside, the $120k level appears as a key zone of interest, with sell-side pressure expected to accelerate in and around this zone based on on-chain price models intersected in prior cycles.” Source: Glassnode The firm’s…
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