Crypto in US 401(k) retirement plans may drive Bitcoin to $200K in 2025

The winds of change are upon us, dear reader. Cryptocurrency, once a rebellious teenager of the financial world, has now been given a seat at the grown-ups’ table. Thanks to none other than President Donald Trump, who, with a stroke of his pen on August 7, opened the door to digital assets through US 401(k) retirement plans. Oh, the drama of it all!

But here’s the juicy part: André Dragosch, the head honcho of European research at Bitwise, suggests that this little piece of legislation might be the magic key to unlocking billions of dollars, possibly driving Bitcoin’s price to a cool $200,000 by the end of 2025. And that, my friends, is just a start. 🌍💰

Trump’s executive order isn’t just a trivial formality-it could set the stage for Bitcoin’s grand debut on the retirement scene, possibly even outshining the approval of Bitcoin ETFs by the US in January 2024. Yes, you heard that right. As Dragosch puts it, this could be “bigger than the US Bitcoin ETF approval itself” (but of course, we’ll all still pretend like the ETF was a big deal, right?).

Hold onto your hats! Dragosch speculates that this “bullish” development could usher in a staggering $122 billion worth of new capital. Yes, BILLION with a B. And let’s not forget-he’s conservatively predicting a Bitcoin price of $200,000 by the year’s end. A modest prediction for such a *bold* future.

“The official prediction remains $200,000 by the end of the year.”

So, what exactly is it about 401(k) plans that makes them such a prime breeding ground for Bitcoin? Well, the market for these retirement funds is massive. $12.2 trillion massive, to be exact. A modest 1% allocation could send Bitcoin prices skyward, which, if Dragosch’s calculations are to be believed, would make for one heck of a year-end celebration. 🥂🎉

Is Bitcoin Headed for a 2025 Peak? Or is the 4-Year Cycle Dead?

– CryptoMoon (@CryptoMoon) August 18, 2025

And just when you thought it couldn’t get more exciting, Dragosch drops another bombshell: Bitcoin ETFs, now accessible through these retirement plans, could very well push Bitcoin’s price to all-time highs. Yes, you read that correctly. A whole new wave of “optimism” could bring us ever closer to that elusive $200,000 target.

Fed policy, retirement plans seen as dual drivers

But let’s not get carried away. According to a survey by Bitwise, financial advisers are eyeing a 2.5% or 3% Bitcoin allocation for these retirement plans. That’s a slightly more *generous* outlook than the initial 1% estimate. A more significant influx of funds than expected? The plot thickens.

But wait-there’s more. The first Bitcoin inflows might happen as soon as this fall, when the US Federal Reserve might-just might-cut interest rates. If that happens, we could very well see Bitcoin soar to new heights. As Dragosch points out:

“If you see further Fed rate cuts, there’s definitely a case for $200,000 by the end of the year.”

And now, for the real suspense-markets are giving an 83% chance that the Fed will keep interest rates steady during the next Federal Open Market Committee meeting on September 17. Will it happen? Tune in next time… ⏳📉

Of course, Bitcoin’s rise isn’t just about the Fed. The real kicker is the financial incentive for retirement plan providers to include Bitcoin ETFs. Big players like BlackRock, Fidelity, and Vanguard are ready and willing to offer Bitcoin exposure through their plans. And though Vanguard is a bit hesitant to jump on the crypto bandwagon, BlackRock and Fidelity are already rubbing their hands in anticipation of the fat profits they’ll make. 🍿💸

BlackRock already holds the largest Bitcoin ETF with a whopping $84 billion in assets. Fidelity’s ETF is the second-largest, managing $22.4 billion. This isn’t just some amateur play; these giants are making moves. 🏦

And just to keep things spicy, Paul Atkins, chair of the US Securities and Exchange Commission, confirmed that his agency is working hand-in-hand with the Trump administration to ensure that retail investors can access crypto assets through their retirement plans-of course, with some “proper guardrails” to keep everything nice and tidy. Right. Because we all know how well that usually goes. 😏

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2025-08-19 14:44