Despite this week’s market downturn, some analysts predict that the inclusion of digital assets in US 401(k) retirement plans may unlock billions of dollars in new inflows by the fall, potentially driving Bitcoin to record highs.
This “bullish” development may push Bitcoin (BTC) above $200,000 before the end of the year, signaling another $122 billion worth of new capital while assuming a modest 1% portfolio allocation, André Dragosch, head of European research at crypto asset manager Bitwise, told Cointelegraph.
Corporate Bitcoin treasury acquisitions continue to attract new entrants, such as the Nasdaq-listed healthcare service provider and Bitcoin treasury firm KindlyMD, which made its first Bitcoin investment of $679 million on Tuesday.
Other big investors are turning from Bitcoin to bet on Ether (ETH) price appreciation. On Thursday, a Bitcoin whale sent $189 million worth of BTC to the Hyperliquid decentralized exchange and converted most of it into a $295 million perpetual future long position and a subsequent $240 million spot ETH position.
Crypto in US 401(k) retirement plans may drive Bitcoin to $200,000 in 2025
The inclusion of cryptocurrency in US retirement plans could mark a milestone for Bitcoin adoption and unlock billions of dollars in new capital, potentially pushing the asset above $200,000 by the end of 2025, according to André Dragosch, head of European research at crypto asset manager Bitwise.
President Donald Trump paved the way for cryptocurrency inclusion in US 401(k) retirement plans by signing an executive order on Aug. 7, granting Americans access to digital assets through their retirement plans.
The inclusion of crypto in 401(k) plans may be even more significant for the Bitcoin (BTC) price than the approval of US spot Bitcoin exchange-traded funds (ETFs) in January 2024, Dragosch said.
This “bullish” development may be “bigger than the US Bitcoin ETF approval itself,” signaling another $122 billion worth of new capital…
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