Bitcoin had a bit of a wobble. It dipped below $112,000 just a few days ago. Then, like a seasoned performer, it climbed back. It now sits above BTC$117,323.54 in late U.S. trading Thursday. This puts it back in the range it held for most of July.
- President Trump’s executive order could allow crypto in 401(k) retirement plans, potentially opening the door for millions of investors. This could bring a steady flow of new capital into the crypto market.
- News of Stephen Miran’s nomination to the Federal Reserve’s Board of Governors, who is likely an ally of Trump, suggests a dovish stance on interest rates. A dovish Fed is generally seen as good for risk assets, including crypto.
- The CME FedWatch tool shows a significant jump in the chance of a September rate cut, which can calm markets and encourage investment. The Fed’s Jackson Hole Economic Symposium is just two weeks away.
What gave the crypto market an initial push? News broke about President Trump’s plan. He intended to sign an executive order. This order would allow crypto, among other assets, in 401(k) retirement plans. That order has now been signed. It opens a new door for many investors.
A New Door for Retirement Savings
This executive order is a quiet but powerful shift. For years, traditional retirement plans, like the 401(k), have been slow to accept digital assets. They often stick to familiar stocks, bonds, and mutual funds. This new order changes that. It opens the door for millions of everyday investors to consider crypto as part of their long-term savings.
Think about it. When you can put a small portion of your retirement funds into something like Bitcoin, it signals a deeper level of acceptance. It’s not just for the tech-savvy or the early adopters anymore. It starts to feel like a legitimate asset class, one that even your financial advisor might soon discuss. This move could bring a steady flow of new capital into the crypto market over time.
It’s a bit like watching a very large ship slowly turn. The financial world moves with caution, especially when it comes to retirement savings. But once the course is set, the momentum builds. This order could be a significant marker in that journey, nudging crypto further into the mainstream financial system.
The Fed’s Shifting Sands
The second big push for Bitcoin came later Thursday. It was late in the U.S. trading session. News broke about Stephen Miran’s nomination. He is set to replace Andrea Kluger on the Federal Reserve’s Board of Governors. Miran currently chairs the White House Council of Economic Advisers. He is likely an ally of President Trump.
This suggests he may share the president’s views. Those views lean towards lower interest rates. We call this a “dovish” stance. A dovish Fed is generally seen as good for risk assets, including crypto. Lower interest rates make it cheaper to borrow money. This can encourage investment in assets that promise higher returns, even if they carry more risk.
Even before Miran’s selection, other Fed officials had been speaking. They reacted to recent economic data. Friday’s jobs numbers were weak. Monday’s ISM Services print was soft. These officials made their expectations clear. A rate cut seems likely at the central bank’s next meeting in September.
The CME FedWatch tool shows this shift. The chance of a September cut jumped to 95%. It was only 38% a week ago. This is a significant change in market sentiment. It means traders are now almost certain a rate cut is coming soon. This certainty can calm markets and encourage investment.
The Fed’s Jackson Hole Economic Symposium is just two weeks away. This gathering has often been a place for Fed chairs to signal major policy moves. Think of it as a quiet whisper that the entire financial world strains to hear. So, many eyes and ears will focus on Jerome Powell’s keynote speech there. What he says could set the tone for months to come.
Will Powell confirm the market’s expectations? Or will he introduce a new twist? The crypto market, always sensitive to macro signals, will be listening closely. A clear signal of lower rates could provide another tailwind for digital assets.
Beyond Bitcoin: A Broader Market View
Bitcoin wasn’t the only asset moving. It climbed to $117,500, up 2% in 24 hours. Ether (ETH) also saw a good jump. It rose 5% to $3,867. XRP gained 3.4% to XRP$3.1438. These moves show that the positive sentiment wasn’t just limited to the largest digital currency. It spread across the broader crypto market.
Traditional markets showed some interesting patterns too. Gold was up 1% to $3,468 per ounce. The dollar dipped slightly across the board. Major stock market indices were mixed, showing no clear direction. This suggests a complex interplay of forces. Some investors are seeking safety in gold. Others are pulling back from the dollar. Stocks are still trying to figure out their next move.
It’s a bit like watching a weather system. You see the clouds gather, the wind shift, and then the rain begins. In financial markets, these signals—a presidential order, a Fed nomination, economic data—all combine. They create the conditions for assets to rise or fall. For now, the conditions seem to favor digital assets.
So, as we watch the market digest these new developments, one question hangs in the air. Will this upward momentum continue? Or is this just a brief pause before the next market twist? Only time, and perhaps Jerome Powell’s speech, will tell.
