Trump’s Bitcoin 401(k) Plan Seen as Catalyst for Crypto Market Rally

Trump’s Bitcoin 401(k) Order Could Open Floodgates for Crypto Investments

The United States has taken a major step toward integrating cryptocurrency into retirement savings. On Thursday, President Donald Trump signed an executive order allowing Americans to include digital assets and other alternative investments in their 401(k) retirement plans and similar defined contribution schemes. Trump’s Bitcoin.

This move directs the U.S. Department of Labor to review and potentially loosen restrictions on alternative assets, including crypto, private equity, and real estate, within these retirement accounts.

Data from the Investment Company Institute and the Federal Reserve Board shows U.S. retirement assets reached $43.4 trillion in Q1 2025. Defined contribution plans account for over $12 trillion of that, with $8.7 trillion in 401(k) plans alone. This opens the door for billions in potential inflows into the crypto market.

Trump’s Bitcoin Steady Demand Could Reshape the Crypto Market

Matt Hougan, CIO of Bitwise, said the policy could transform the crypto market by generating “slow, steady, and consistent” demand from retirement contributions. He believes this could mean higher returns with reduced volatility.

Hougan argued that crypto deserves a place in some 401(k) portfolios. “It’s been the best-performing asset class over the past decade, and it’s positioned for the next ten years,” he said.

Ji Hun Kim, CEO of the Crypto Council for Innovation, called the move a strong statement on digital assets’ role in the U.S. financial system. He praised the administration’s commitment to creating clear policies to make the U.S. the “crypto capital of the world.”

Abdul Rafay Gadit, founder of blockchain platform ZIGChain, said the policy would help build infrastructure to support large-scale tokenized investments, aligning with growing regulatory clarity under the current SEC leadership.

Execution Will Decide the Outcome

Despite the optimism, some experts urge caution. Michael Heinrich, CEO of 0G Labs, called the order a “historic moment” for integrating crypto into mainstream finance, but stressed that its success hinges on execution.

“If done right, it could unlock trillions in retirement capital for Bitcoin and other regulated assets. If mishandled, it risks political and financial backlash,” Heinrich warned.

Joshua Krüger of the dEURO Association expects Bitcoin to benefit first due to its strong institutional acceptance. He added that asset managers like BlackRock, Fidelity, and Franklin Templeton are already preparing relevant products.

Krüger predicted altcoins would follow in the medium term, once regulated products, clear standards, and stronger institutional trust are established.

Criticism: Risk to Retirement Savings

Not everyone supports the initiative. Gold advocate and crypto critic Peter Schiff warned it could worsen America’s retirement savings gap.

“Most Americans are already saving far less than needed for retirement. Allowing them to gamble their 401(k) in Bitcoin and other cryptos will only make the problem worse,” Schiff wrote on X.