Bitcoin
$122,064
has started the week by breaking the $122,000 threshold, while Ethereum 
$4,302 has surged past $4,300. Several altcoins have experienced increases of 5% and above. Behind this heightened market activity is U.S. President Donald Trump’s executive order that opens room for cryptocurrencies in 401(k) plans, coupled with sustained institutional demand. Augustine Fan, the Head of Insights at SignalPlus, notes that the market rebound is reflecting the impact of headlines associated with the call to “explore adding crypto assets and private equity to 401(k) portfolios.” Another crucial focus keeping the market afloat is the inflows into spot ETFs.
The Noticeable Impact of the 401(k) Decision on Bitcoin and Cryptocurrencies
Trump’s executive order has tasked the Department of Labor with evaluating the inclusion of cryptocurrencies, private equity, and other alternative assets in 401(k) retirement plans. According to Fan, this asset class has the potential to generate significant buying demand from millions of Americans with access to retirement accounts. The market perception indicates that the headlines are directly influencing pricing.
Spot Bitcoin ETFs
In the Bitcoin realm, spot ETFs have attracted a net inflow of $253 million weekly, according to SoSoValue data. This keeps the demand vibrant despite consolidation following last month’s all-time high. Institutional balance sheet-treasury acquisitions remain a key theme being monitored.
Presto Research analyst Min Jung pointed out the substantial impact of major wallets, mentioning SharpLink Gaming’s unofficial purchase of 52,809 ETH over the weekend. On the macro stage, caution prevails with the upcoming announcements of CPI on Tuesday and PPI on Thursday. Fed Chair Jerome Powell indicated at the last FOMC meeting that September’s rate cut decision would depend on data flow. Currently, CME FedWatch shows an 88.4% probability of a 25 basis point rate cut on September 17.
Ethereum is Racing to Record Highs
Ethereum has climbed to over $4,300, reaching its highest level since December 2021, close to its $4,878 record. SoSoValue data suggests that with a weekly influx of $461 million, spot Ethereum ETFs have surpassed those of Bitcoin, bolstering the upward momentum.
Spot Ethereum ETFs
According to CoinGlass, over $350 million in long and short positions were liquidated in the last 24 hours, with $215 million coming from short liquidations. The extensive short liquidations in derivative markets are also supporting the rise. BTC Markets analyst Rachael Lucas noted that momentum, inflows, and headlines are supportive of ETH, and the threshold regarding Vitalik Buterin’s wealth has been crossed again.
The short-term performance gap depends on whether institutional inflows will continue. As ETH approaches a peak, price behavior is sensitive to the continuity of fund flows into ETFs and news developments. The equation investors follow is “momentum, inflows in ETFs, and policy headlines.”