Bull returns, hurry back: UK interest rate cut, US opens 401(k) retirement plan to invest in Crypto Assets.

Bull is back, hurry back: On August 8th, Crypto Assets collectively big pump, BTC rise 2%, ETH rise 5%!

Multiple favorable news has arrived:

On August 7, the Bank of England cut interest rates by 25 basis points to 4.00%.

On August 7, Trump will allow the U.S. 401(k) retirement plan to invest in Crypto Assets.

According to FedWatch predictions, the probability of the Federal Reserve lowering interest rates in September is as high as 91.4%.

What is a 401(k) plan?

The country's 401(k) plan is not a traditional retirement fund plan, but rather a retirement savings plan provided by employers, allowing employees to choose to have a portion of their salary deposited into a personal account under the plan for retirement savings. Additionally, employers typically offer a certain percentage of matching contributions. The funds can be invested in low-risk assets such as funds and stocks.

Why is the 401(k) plan so important?

The scale of the U.S. 401(k) retirement market is beyond imagination. As of the third quarter of 2024, the total assets of the 401(k) plans reached $8.7 trillion, serving over 70 million active participants and involving 715,000 plans. This scale accounts for about 20% of the total retirement assets in the U.S., which is $44.1 trillion, making it the largest defined contribution retirement market in the world.

It is currently unknown whether the new executive order will restrict the proportion, types, or coins of investment in encryption. However, it can be inferred that crypto spot ETFs will be the first beneficiaries, as they are regulated by the SEC, have strong compliance, stable custody and valuation mechanisms, and good liquidity.

Once the policy is implemented, from the 8.7 trillion dollars in funds, if only 1% of the 401(k) funds flow into the crypto market, it will bring an influx of 87 billion dollars. If all of it is used to purchase Bitcoin, it would create a demand for 748,000 BTC, and if all of it is for ETH, the demand would be approximately 22.6 million.

If 10% of the 401(k) funds enter the Crypto Assets market, it would bring an inflow of $870 billion to the entire Crypto Assets market, accounting for 22.2% of the current total market value of Crypto Assets and 36.7% of Bitcoin's market value. This is 70 times the total assets of all current Crypto Assets ETFs!

Now you know why the 401(k) plan is so important. With the Federal Reserve's interest rate cuts starting in September, it is easy to imagine that the future of the Crypto Assets market will surely experience a big bull!