US President Donald Trump signed a new executive order on August 7th, allowing cryptocurrency to be included in his US 401(k) retirement plan.
Trump’s signature is considered a turning point for Bitcoin adoption, but Bitwise Europe’s research director Andre Dragosch has released his new Bitcoin price forecast.
Therefore, Dragosch said 401(k) Crypto Access is unlocking billions of dollars with new capital, pushing BTC to $200,000 by the end of the year.
Dragosch said the total assets of US retirement assets amount to $12.2 trillion, and even if 1% is allocated to cryptocurrency, there could be a new capital flow of $122 billion.
“Allowing cryptocurrency investments in US retirement plans is even more important than approving the Spot Bitcoin ETF.
According to a Bitwise study, retirement portfolio advisors tend to recommend investing 2.5% or 3% in Bitcoin.
Dragosch said the initial Bitcoin inflow from retirement planning managers coincides with the initial interest rate cuts expected from the Fed in the fall, and could push Bitcoin to new heights.
“If the Pension Fund’s Bitcoin allocation coincides with the Fed’s September interest rate cuts, the chances of the price reaching $200,000 will be even greater.”
*This is not investment advice.
