US Retirement Accounts Can Now Invest in Bitcoin

On Thursday, a major change happened in the US retirement world: President Donald Trump signed an order allowing 401(k) retirement plans to invest directly in cryptocurrencies like Bitcoin, Ethereum, and Solana. This is huge because for decades, retirement accounts were mostly off-limits to crypto investments.

Why Was Crypto Blocked From 401(k)s Before and What Changed?

The US Department of Labor used to be very cautious about crypto. Just a few years ago, they warned plan managers to be extremely careful, saying crypto was risky and could even lead to legal trouble if losses happened. This warning basically scared many 401(k) providers away from adding crypto options. As a result, most Americans didn’t have a way to invest their retirement savings in crypto through these accounts.

By mid 2025, the DOL reversed its strict position after facing criticism and legal pressure. Now, with Trump's executive order, it’s becoming possible. This is an active encouragement to include crypto among retirement investments.

This is huge, US 401(k) market is massive, worth about $12.5 trillion and even if just 1% of these funds move into crypto, that’s $125 billion flowing into digital assets. If the allocation grows to 10%, we could see $1.25 trillion entering crypto markets.

What Could This Mean for Crypto Prices?

Because 401(k) contributions happen regularly (every two weeks), there would be ongoing demand for crypto. With millions of Americans automatically putting money into their retirement plans, even a small percentage going into crypto could push prices up for years.

Watch these inflows closely because they can create a strong and consistent buying pressure.

What Is the Big Picture

With this shift digital assets are becoming part of the traditional financial system. Experts say this is a turning point that will push crypto into mainstream adoption far beyond what ETF launches achieved.

In short, the new rule puts a base level of steady demand that can support growth and reduce the wild ups and downs we’ve seen before.

Kay Takeaways

• US 401(k) retirement plans can now include crypto, opening the door for billions in new investment.
• This change creates steady, long-term demand, especially for Bitcoin, Ethereum, and Solana.
• Expect smoother price moves and gradual growth thanks to regular inflows.
• Keep an eye on upcoming regulations and how crypto funds will be offered in retirement plans.
• Consider DCA strategies to match the steady buying trend from retirement accounts.

You Should Watch

1. Support at $116,520 and $115,400 Area: If Bitcoin holds above these levels, expect continued bullish momentum and possible retests of resistance near $118,900 and $120,200.
2. Price Rejection Below $115,000: Falling below this zone may signal weakening momentum and open the way for deeper retracement toward $113,350 or even $112,600.
3. Break and Hold Above $118,900: A close above this resistance could lead to a stronger rally and new highs.
4. Volume Confirmation: Watch for volume to increase on upward moves for confirmation of strength.