US President Donald Trump signed a new Executive Order on August 7th that allows cryptocurrencies to be included in US 401(k) retirement plans.
While Trump’s signature is considered to be a turning point for Bitcoin adoption, Bitwise European research head André Dragosch announced his new Bitcoin price prediction.
Accordingly, Dragosch stated that 401(k) crypto access could unlock billions of dollars in new capital, pushing BTC to $200,000 by the end of the year.
Dragosch stated that total retirement assets in the US have reached $12.2 trillion, and that even if 1 percent is allocated to cryptocurrencies, $122 billion in new capital flows could occur.
“Allowing cryptocurrency investments in US retirement plans is even more important than approving a spot Bitcoin ETF. According to a Bitwise survey, retirement portfolio advisors tend to recommend a 2.5% or 3% investment in Bitcoin.
Dragosch noted that the first Bitcoin inflows from retirement plan managers could coincide with the first interest rate cut expected from the Fed in the fall, which could push Bitcoin to new heights.
“If pension funds’ Bitcoin allocations coincide with the Fed’s September rate cut, the chance of the price reaching $200,000 increases even more.”
*This is not investment advice.