Bitcoin Pushes Toward $122K, Ether Hits Three-Year High as Trump Opens Door for Crypto in 401(k)s

Cryptocurrency markets rallied late Sunday, with bitcoin edging close to $122,000 and ether touching its highest level since 2021, after former U.S. President Donald Trump signed an executive order aimed at allowing retirement accounts to invest in digital assets.

As of 11:25 p.m. ET, bitcoin was trading at $121,852, up more than 3% over the past 24 hours, while ether gained over 1% to reach $4,300. The surge came in the wake of Trump’s directive to the U.S. Labor Department to explore permitting cryptocurrencies, private equity, and other alternative assets in 401(k) retirement plans, a move that could open the door to billions in new demand.

Analysts say the potential inclusion of crypto in such widely held retirement accounts could become a significant tailwind for the market. “This type of policy shift could generate substantial buying pressure,” noted Augustine Fan, Head of Insights at SignalPlus, adding that the announcement comes amid already strong institutional flows.

ETF Inflows Fuel Momentum
Beyond the policy news, spot bitcoin exchange-traded funds recorded $253 million in net inflows this week, maintaining demand even after prices consolidated from last month’s record high. Ethereum has seen even stronger momentum, with spot ether ETFs pulling in $461 million over the same period — outpacing bitcoin’s inflows and driving the asset to levels last seen in December 2021.

“Large inflows, short liquidations, and renewed optimism have put ether in a strong position to test its all-time high,” said Rachael Lucas, crypto analyst at BTC Markets. Ether’s record stands at $4,878, just 11% above current prices.

Corporate Treasuries Add to Buying Pressure
Institutional buying isn’t limited to ETFs. Over the weekend, gaming company SharpLink Gaming reportedly acquired 52,809 ETH, underscoring a growing trend of corporate treasuries holding digital assets. “These large buyers are a major force in the current market,” said Min Jung, analyst at Presto Research.

Eyes on Inflation Data
Despite the bullish sentiment, traders are keeping a close watch on upcoming U.S. inflation data, which could influence Federal Reserve interest rate decisions. July’s Consumer Price Index report is due Tuesday, followed by the Producer Price Index on Thursday.

At the Fed’s most recent meeting, Chair Jerome Powell signaled that a September rate cut was not a certainty, emphasizing the importance of economic indicators in shaping the central bank’s next move. Markets currently see an 88.4% probability of a quarter-point cut to 4.00–4.25% at the September 17 meeting, according to CME Group’s FedWatch Tool.

With policy shifts, institutional inflows, and macroeconomic events converging, both bitcoin and ether face a pivotal stretch that could determine whether they push into uncharted territory in the weeks ahead.