Trump Executive Order Opens 401(k) Access to Crypto; Markets Rally on Risk-On Sentiment

Key Takeaways:

*A surprise executive order directs regulators to enable 401(k) access to private equity, real estate, and cryptocurrencies—potentially unlocking trillions in new investment flows.

*Digital assets surged following the announcement, buoyed by expectations of mainstream adoption and federal-level endorsement.

*Wall Street indices rallied toward record highs, while the Crypto Fear & Greed Index hit 75—signaling strong bullish momentum and elevated investor confidence.

Market Summary:

President Donald Trump shocked financial markets by signing an executive order aimed at expanding the investment scope of 401(k) retirement plans to include private equity, real estate, and cryptocurrencies. Historically, 401(k) investments have been confined to traditional assets such as stocks, bonds, and mutual funds—largely due to concerns around high fees, illiquidity, volatility, and lack of transparency.

The new directive calls on the Department of Labor, the Treasury Department, and the SEC to explore the necessary regulatory changes to facilitate the inclusion of these alternative assets. With the U.S. 401(k) market estimated to hold between $9 trillion and $12 trillion in assets, the move could unlock massive inflows into the digital asset space if implemented, potentially triggering explosive growth across crypto markets.

Cryptocurrencies responded sharply to the announcement, with the market rallying on renewed investor optimism. The executive order marks a significant show of federal-level support for digital assets—signaling both regulatory recognition and potential future integration within mainstream retirement portfolios.

Broader financial markets also reflected a return of risk appetite. Wall Street rebounded strongly, with major indices approaching record highs. In the crypto space, sentiment surged alongside prices, as the Fear & Greed Index climbed to 75—indicating elevated bullish sentiment and growing buying pressure that may drive cryptocurrencies to fresh highs in the coming sessions.

Technical Analysis 

BTC, H4

Bitcoin (BTC) has staged a solid recovery from its recent dip below the $112,000 mark—its monthly low—and has since formed a higher-high price pattern, signaling a potential bullish trend reversal. In the latest move, BTC broke above a key pivot level at $116,000. A sustained hold above this threshold could pave the way for a renewed rally, with the next major resistance seen at the all-time high near $122,000.

Momentum indicators support the bullish narrative. The Relative Strength Index (RSI) surged above the midpoint, signaling strengthening upside momentum. Meanwhile, the MACD has crossed above the zero line, further confirming the shift toward bullish dominance in the market.

Should BTC maintain traction above current levels, investor sentiment may continue to firm, setting the stage for a potential breakout to fresh record territory.

Resistance level: 121,550.00, 125,700.00

Support level: 116,170.00, 111,700.00

ETH, H4

Ethereum (ETH) staged a swift rebound after a false breakout below the key $3,600 support level, reclaiming lost ground and signaling renewed bullish momentum. Following a brief consolidation phase, ETH has gained over 6% and is now approaching a major resistance near the $3,900 mark.

While the $3,900 level may present a strong barrier, ETH’s ability to hold above the Fair Value Gap (FVG) around $3,720 would reinforce the bullish trajectory, suggesting sustained upside potential.

Momentum indicators point to growing strength. The Relative Strength Index (RSI) has surged toward the overbought zone, while the MACD continues to edge higher above the zero line—both reinforcing a bullish bias for ETH in the near term.

Resistance level: 4180.00, 4527.00

Support level: 3637.00, 3326.00