- 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.
In a twist worthy of a theatrical performance, the Trump administration has decided to loosen the shackles of Biden-era guidance, allowing retirement plans—those sacred 401(k)s—to dip their toes into the murky waters of Bitcoin [BTC] and other cryptocurrencies. Who knew retirement could be so thrilling? 🎢
On the 28th of May, the Department of Labor, in a statement that could rival a Shakespearean soliloquy, rescinded the 2022 directive that warned of ‘extreme care’ before including crypto in 401(k) investment plans. Because, why not throw caution to the wind? 🥳
However, the agency was quick to clarify that this U-turn doesn’t mean they’re throwing a digital asset party; it’s more of a neutral stance—like a referee who forgot which game they were officiating. 🤷♂️
New demand for BTC?
Most ETF analysts and asset managers are now viewing this update as a golden opportunity for BTC. Angre Dragosch, the head of research at Bitwise Europe, exclaimed,
“This was by far the bigger news today. Approximately $8.9 trillion are managed in 401k plans in the US. Bitcoin demand shock incoming.”
Ryan Rasmussen, another Bitwise analyst, chimed in with a prediction that a mere 1% demand from 401(k)s could outpace ETF inflows. Imagine the chaos!
“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 context, BTC has been on a rollercoaster ride, doubling from $36K to $72K in Q1 2024 after U.S. spot ETFs made their grand entrance. Overall, the asset has rallied nearly 180% to over $110K since early 2024, but it has briefly retraced to $107K at press time. Hold onto your hats! 🎩
BTC to eye $120K, says Glassnode
On-chain signals suggest that BTC may be eyeing a lofty $120K, according to Glassnode. In its weekly on-chain report on 28 May, the firm declared,
“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.”
The firm’s $120K projection was based on MVRV extreme deviation pricing bands. In early and late 2024, BTC price consolidated between extreme bands (red and orange). Currently, this translated to $120K and $100K levels. It’s like a game of financial limbo! How low can you go? 🤔
It’s worth noting that the profitability of short-term holders (STH) has surged 16% per the SOPR indicator. But CryptoQuant’s Axel Adler pointed out that selling pressure was relatively muted compared to past profit-taking activities, which means BTC might just keep climbing higher. 🚀
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On the flip side, a whopping $10B of leveraged shorts could be wiped out if BTC jumps to $113K. It’s a wild world out there in the crypto circus! 🎠
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2025-05-29 14:20