Bitcoin climbed above US$121,000 and ether reached US$4,300 late August 10, 2025, after a new executive order from US President Donald Trump directed regulators to consider allowing 401(k) retirement accounts to invest in cryptocurrencies and other alternative assets.

Bitcoin traded at US$121,900, up 3.33% over the past 24 hours, while ether rose 1.25% to US$4,300 as of 11:25 p.m. on August 9, 2025, according to The Block.

Analysts say spot ETF inflows and corporate cryptocurrency treasury purchases are supporting prices, with US$253 million in net inflows for bitcoin and US$461 million for ether ETFs last week.

Ethereum’s price hit its highest level since December 2021, now about 11% below its all-time high.

Market observers note that upcoming US inflation data, including Consumer Price Index and Producer Price Index reports this week, could influence further price movements.

The CME FedWatch Tool currently shows an 88.4% probability of a 25 basis point rate cut to 4.00-4.25% at the Federal Reserve’s September 17 meeting.

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🔗 Source: The Block

🧠 Food for thought

1️⃣ Retirement account access could dramatically expand crypto’s institutional investor base

Trump’s 401(k) executive order targets a massive untapped market, as current institutional crypto adoption remains relatively concentrated among specific investor types.

A survey of over 250 institutions found that while 60% have some allocation to digital assets, most allocate conservatively with 35% keeping exposure between just 1-5% of their portfolios1.

Hedge funds show higher allocation rates above 5% compared to other institutional investors, suggesting that broader institutional categories like retirement funds represent significant untapped demand1.

The 401(k) move could be particularly impactful because it shifts crypto access from specialized institutional investors to the much larger universe of American retirement savers.

2️⃣ Macro data timing creates heightened sensitivity for crypto markets this week

The current rally comes at a critical macroeconomic moment, with CPI and PPI inflation data scheduled for release just as crypto markets have shown strong correlation with inflation indicators.

Rising Consumer Price Index readings historically drive increased Bitcoin demand as investors seek hedges against currency devaluation, while Federal Reserve interest rate decisions significantly impact liquidity flows into cryptocurrencies2.

With the CME FedWatch Tool showing 88.4% probability of a September rate cut, this week’s inflation data could either reinforce the current rally or create volatility if numbers come in higher than expected.

The timing amplifies the potential impact of both the 401(k) policy catalyst and underlying macroeconomic conditions, creating a scenario where institutional demand drivers and inflation hedge dynamics could align or conflict depending on the data releases.

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