Bitcoin Breaks Above $116K After Trump’s Pro-Crypto Retirement Order

The cryptocurrency market is riding a wave of bullish momentum after U.S. President Donald Trump signed a landmark executive order allowing alternative assets, including cryptocurrencies, to be included in 401(k) retirement plans.

Bitcoin (BTC) surged to a high of $117,689 before settling around $116,570, up 1.7% for the day. This comes as part of Trump’s broader pro-crypto policy direction and is being seen as a pivotal move for mainstream adoption.

Trump’s order effectively unlocks the $8.9 trillion U.S. retirement savings market, paving the way for crypto exposure in defined contribution plans. Analysts say this development is likely to accelerate institutional inflows into Bitcoin and other digital assets, further legitimizing crypto as a long-term investment vehicle.

According to Edul Patel, CEO of Mudrex, “This policy move introduces crypto to a much wider investor base. Institutional and retail inflows will likely rise.” Market participants are now eyeing $120,000 as the next resistance level for Bitcoin, while strong support appears to have formed above $115,000.

Ethereum, XRP, and Altcoins Outshine Bitcoin

While Bitcoin drew headlines, Ethereum (ETH) and XRP saw even stronger gains. Ethereum climbed over 6% to trade near $3,917, approaching its 2021 highs and supported by robust ETF inflows totaling $222.3 million. Corporate treasuries are increasingly adding ETH to their holdings, mirroring the early Bitcoin strategy popularized by firms like MicroStrategy.

Ripple’s XRP soared over 11% to reach $3.31 after the long-running legal battle between Ripple Labs and the SEC came to a formal end. Trump’s appointment of more pro-crypto figures to the SEC and the shift of regulatory oversight to the Commodity Futures Trading Commission (CFTC) appear to have accelerated the case resolution.

Other altcoins also joined the rally. Cardano (ADA) rose 7.5%, Solana (SOL) gained 3.3%, and meme coin Dogecoin (DOGE) jumped 7.1%. Even $TRUMP, a politically-themed token, saw a modest 3.1% rise.

Market Sentiment and the Road Ahead

Despite the excitement, some caution remains. Spot Bitcoin ETFs continue to witness capital outflows after July’s record highs, and global risk appetite is dented by Trump’s new trade tariffs.

Still, the momentum around crypto remains optimistic as Bitcoin’s market cap now exceeds Amazon, making it the fifth most valuable asset globally at $2.43 trillion.

The nomination of Stephen Miran, a crypto-friendly economist, to the Federal Reserve Board further fueled optimism. Investors are now watching for regulatory clarity and interest rate decisions, which could shape the next leg of the crypto bull run.

As institutional interest continues to grow, Bitcoin and other digital assets may soon become a permanent fixture in the world’s largest investment portfolios.