Bitcoin surged to $122,300 and Ethereum to $4,348, driven by Donald Trump’s announcement authorizing 401(k) retirement plans to invest in cryptocurrencies and other alternative assets.
Bitcoin, Ethereum, and Crypto Market Continue Surge After Trump’s Announcement
Overnight on Sunday to Monday, the crypto market ignited. Bitcoin skyrocketed to $122,300, up 3.33% in 24 hours, while Ethereum reached $4,348, its highest level since 2021. In the background, an announcement that could shake up millions of American wallets: Donald Trump has just opened 401(k) retirement plans to cryptocurrencies and other alternative assets.
The shockwave is immediate. Such a measure could unleash a massive influx of capital, as 401(k) represents one of the main pillars of retirement savings in the United States. As a result, the markets react with a mix of optimism and greed.
The Fuel: ETF Spot and Institutional Flows
If the presidential announcement lit the fuse, the engine was already running. ETF Bitcoin Spot recorded $253 million in net inflows this week, showing that institutional demand remains strong despite last month’s post-ATH consolidation.
Ethereum, on the other hand, outperformed. ETF ETH Spot attracted $461 million in seven days, surpassing its Bitcoin counterparts. This appetite from professional investors not only propelled ETH to its highest since December 2021 but also led to huge short positions liquidations. Result: Vitalik Buterin unofficially re-enters the billionaires’ club.
Ethereum 11% Away from ATH: The Next Record Breaker?
With a historical high at $4,878, ETH is now just 11% away from that threshold. For some analysts, all signs are green: momentum, incoming flows, market sentiment… This might lead to a quick breakthrough if the momentum continues.
Bullish signals are multiplying, reinforced by a new move this weekend: SharpLink Gaming reportedly acquired 52,809 ETH for its treasury. Publicly traded companies have recently embarked on a frantic accumulation of ethers, following the MicroStrategy trend.
Macro: The Factor to Watch
If the euphoria is palpable, it could quickly face economic data hurdles or use them to explode. American inflation is on the agenda this week, with the publication of the July Consumer Price Index (CPI) on Tuesday and the Producer Price Index (PPI) on Thursday.
During the last Fed meeting, Jerome Powell dampened expectations of a rapid rate cut, hinting that a cut in September will depend on macro data, but the market widely anticipates the first ‘rate cut’. Currently, the CME FedWatch Tool assigns an 88.4% probability to a 0.25% reduction, bringing rates to 4.00-4.25%.
Between political promises, massive institutional flows, and macroeconomic uncertainties, the crypto market enters an explosive August. If ETH surpasses its ATH and BTC maintains its push, the back-to-school season could mark a historic turning point.
