Today, U.S. President Donald Trump signed an order that opens access to alternative assets for 401(k) investors, including digital assets. This event may have significant implications for the cryptocurrency market.
Essence of Trump's Order
The signed order allows the Department of Labor to reconsider its guidance regarding fiduciaries' duties related to alternative asset investments in ERISA-governed 401(k) and other defined-contribution plans. The order states that "alternative assets, such as private equity, real estate, and digital assets, offer competitive returns and diversification benefits."
Impact on Cryptocurrency Market
The cryptocurrency market reacted to the news with significant gains. Bitcoin's price rose above $117,000, showing a 2% intraday increase. Ethereum, which has garnered much attention in recent months, gained 5%.
Response from Investment Community
As of this writing, the total market capitalization stands at $3.93 trillion, with Bitcoin looking to reclaim a 60% market share. This event has attracted attention from the investment community, anticipating changes in access rules to alternative assets.
The signed order may fundamentally alter investment methods, while expanding opportunities for 401(k) investors and strengthening the U.S. position in the cryptocurrency arena.
