Analysts predict that the inclusion of cryptocurrency in US 401(k) retirement plans could inject billions of dollars into the market, potentially driving Bitcoin above $200,000 by the end of 2025.
André Dragosch, head of European research at crypto asset manager Bitwise, said that even a modest 1% allocation from retirement funds could bring around $122 billion into Bitcoin. He added that most investors are likely to be new to the asset, meaning the investment would feel like a fresh opportunity.
The development follows an executive order signed by former President Donald Trump on 7 August, allowing Americans to include digital assets in their retirement plans. Dragosch suggested that this move could have a greater impact on Bitcoin than the approval of US spot Bitcoin ETFs in January 2024.
Corporate and institutional interest in cryptocurrency also continues. Nasdaq-listed healthcare provider KindlyMD recently invested $679 million in Bitcoin, while other large investors have shifted focus to Ether in search of price appreciation.
By allowing crypto in 401(k) plans, retirement fund managers will also be able to invest in Bitcoin ETFs, potentially pushing prices to new all-time highs.
Analysts see the move as a significant milestone for Bitcoin adoption in the United States, even amid short-term market downturns.
