Bitcoin and Ethereum Surge! Trump Releases Major Positive News, $9 Trillion in Funds Set to Flow into Cryptocurrency? 

The immense scale of 401(k) plans, combined with imminent interest rate cuts from the Federal Reserve, may trigger a slow bull market for cryptocurrency.

On August 8, Bitcoin (BTC) soared to over $117,000. Ethereum (ETH) rose more than 6% within 24 hours, exceeding $3,900.

In terms of news, U.S. President Trump signed an executive order allowing 401(k) retirement accounts to invest in cryptocurrencies. Additionally, Trump nominated his economic advisor Stephen Miran to the Federal Reserve Board, which could accelerate the pace of interest rate cuts.

401(k) Plans Are Huge, May Initiate a Slow Bull Market for Cryptocurrency

A 401(k) plan is a long-term retirement savings account established by U.S. employers for their employees. The total assets currently amount to $8.7 trillion, with over 90 million participants across the country.

Even if only 2% of the 401(k) funds flow into cryptocurrency, that would equate to $170 billion in new buying power. This steady and lasting influx might be the lifeblood of a future "slow bull" market for crypto assets.

Imminent Rate Cuts from the Federal Reserve Favor Cryptocurrency

Miran's addition to the Federal Reserve is likely to undermine the authority of current Chairman Powell, promote Trump's proposals for rate cuts, and accelerate the “MAGA-ization” of the Fed.

According to the CME Group's FedWatch tool, the likelihood of a Federal Reserve rate cut in September has risen from 40% to over 90% in just one week.

Will Bitcoin and Ethereum Continue to Rise?

From the beginning of 2025 to now, Bitcoin has seen a cumulative increase of 25%, while Ethereum has risen by 16%.

Standard Chartered Bank predicts that Bitcoin will reach $135,000 by the end of the third quarter in 2025, and climb to $200,000 by the end of the year. Meanwhile, Ethereum is expected to rise to $4,000 by the end of 2025.

Ben Ritchie, Managing Director of Alpha Node Global, forecasts that Ethereum could reach $6,000 by 2025, emphasizing that the growing interest from institutional investors is a significant driving force.