Despite this week’s market downturn, some analysts predict that the inclusion of digital assets in US 401(k) retirement plans may unlock billions of dollars in new inflows by the fall, potentially driving Bitcoin to record highs.
This “bullish” development may push Bitcoin (BTC) above $200,000 before the end of the year, signaling another $122 billion worth of new capital while assuming a modest 1% portfolio allocation, André Dragosch, head of European research at crypto asset manager Bitwise, told Cointelegraph.
Corporate Bitcoin treasury acquisitions continue to attract new entrants, such as the Nasdaq-listed healthcare service provider and Bitcoin treasury firm KindlyMD, which made its first Bitcoin investment of $679 million on Tuesday.
Other big investors are turning from Bitcoin to bet on Ether (ETH) price appreciation. On Thursday, a Bitcoin whale sent $189 million worth of BTC to the Hyperliquid decentralized exchange and converted most of it into a $295 million perpetual future long position and a subsequent $240 million spot ETH position.
Crypto in US 401(k) retirement plans may drive Bitcoin to $200,000 in 2025
The inclusion of cryptocurrency in US retirement plans could mark a milestone for Bitcoin adoption and unlock billions of dollars in new capital, potentially pushing the asset above $200,000 by the end of 2025, according to André Dragosch, head of European research at crypto asset manager Bitwise.
President Donald Trump paved the way for cryptocurrency inclusion in US 401(k) retirement plans by signing an executive order on Aug. 7, granting Americans access to digital assets through their retirement plans.
The inclusion of crypto in 401(k) plans may be even more significant for the Bitcoin (BTC) price than the approval of US spot Bitcoin exchange-traded funds (ETFs) in January 2024, Dragosch said.
This “bullish” development may be “bigger than the US Bitcoin ETF approval itself,” signaling another $122 billion worth of new capital while assuming a modest 1% portfolio allocation, Dragosch told Cointelegraph during the Chain Reaction daily X spaces show on Monday, throwing in a price prediction for good measure:
“The official prediction remains $200,000 by the end of the year.”
“If you look at 401(K) and defined-contribution retirement plans in the US, they are huge,” said Dragosch, adding that 1% was a “relatively conservative” allocation estimate for the $12.2 trillion industry.
Including digital assets in retirement plans will enable 401(k) portfolio managers to invest in Bitcoin ETFs, which may push Bitcoin’s price to new all-time highs, flashing another optimistic signal for Bitwise’s $200,000 Bitcoin price target for the end of 2025.
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Kanye West YZY sniper wallet linked to $21 million LIBRA extraction scheme: Analysts
An onchain investigation by pseudonymous analyst Dethective linked a wallet that sniped the Kanye West-themed token YZY to another set of wallets behind the LIBRA token, suggesting that the same operator extracted tens of millions of dollars using insider knowledge.
In a series of X posts on Thursday, Dethective revealed that a YZY sniper wallet managed to buy $250,000 worth of tokens at just $0.20, far below the price most traders paid. Within minutes, the wallet secured over $1 million in profit, which was later funneled into a treasury wallet.
The same treasury wallet had also received large sums from wallets tied to LIBRA’s launch six months ago. Two “Libra sniper” wallets extracted a combined $21 million. In total, nearly $23 million was pulled across the YZY and LIBRA launches, with funds later moved to Kamino or Binance.
“We can be sure this is someone with clear inside info,” Dethective wrote. “The proof is that he did not snipe any coin besides $YZY and $LIBRA and he was prepared with huge size,” they added.
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Bitcoin bull and billionaire files for $250 million SPAC targeting DeFi, AI
Early Bitcoin investor and billionaire Chamath Palihapitiya filed to raise $250 million in blank-check company “American Exceptionalism Acquisition Corp A,” targeting the decentralized finance, AI, energy and defense sectors.
The special purpose acquisition company (SPAC) would be led by Social Capital managing partner Steven Trieu as CEO and Palihapitiya as chairman, according to the registration statement filed with the US Securities and Exchange Commission on Monday.
The $250 million raise seeks to offer 25 million shares at $10 each under the ticker AEXA on the New York Stock Exchange.
Palihapitiya and Trieu are betting on decentralized finance, not Bitcoin, to lead the next wave of financial innovation, focusing on solutions that bridge traditional markets with blockchain technology:
“While Mr. Palihapitiya has long been a proponent of Bitcoin as an inflation hedge and alternative to fiat currencies, we believe that the next stage of development is the…
cointelegraph.com