Bitcoin climbed above $122,000 on Sunday night, following an executive order by former President Donald Trump that directs regulators to consider allowing 401(k) retirement plans to include bitcoin and other digital assets.
Ether also rose, reaching $4,300, its highest price since December 2021.
Trump’s executive order boosts bitcoin price
The week’s rally was attributed to Trump’s announcement, which could open millions of American retirement accounts to bitcoin exposure.
Augustine Fan, Head of Insights at SignalPlus, commented:
“Crypto [saw] a rebound in prices this week, led by headline statements from Trump ordered regulators to ‘look into’ the possibility of including crypto (and private equity) into 401k portfolios.”
The Labor Department has been tasked with exploring the inclusion of bitcoin and other alternative assets in retirement plans, potentially driving significant new demand.
Institutional & corporate inflows
Spot bitcoin exchange-traded funds have seen 13 consecutive trading days of inflows, with $253 million in net inflows this week alone, maintaining strong demand even as prices consolidate after last month’s all-time high.
Analysts highlighted that corporate bitcoin treasuries remain a critical driver of the current cycle.
Macroeconomic risks ahead
Despite the bullish momentum, upcoming U.S. macro data releases may influence the market.
The Consumer Price Index (CPI) and Producer Price Index (PPI) reports are due this week, with Federal Reserve Chair Jerome Powell recently suggesting that a September rate cut is less likely without further evidence of easing inflation.
According to the CME FedWatch Tool, there is currently an 88.4% probability of a 25 basis point rate decrease at the next Federal Open Market Committee meeting in September.
