Bitcoin is seeing notable gains today, rallying over 2.5% to break above $122,000 and approach its all-time high amidst a broadly bullish crypto market. A key factor driving optimism is the recent executive order signed by President Donald Trump, which expands options for 401(k) retirement plans to include alternative financial assets such as private equity, real estate, and digital currencies like Bitcoin. This development promises greater investment diversification and could inject new retail capital into the crypto space, boosting demand and liquidity. Additionally, the Federal Reserve’s upcoming September meeting is widely predicted to result in at least a 0.25% interest rate cut, freeing up financial markets and potentially encouraging further risk-taking among investors. As regulatory barriers ease and monetary policy turns more accommodative, conditions are lining up for continued momentum in Bitcoin’s price action.
However, investors should remain cautious as the outlook is not risk-free. The expanded 401(k) access to alternative assets could expose retail investors to the higher costs, lower liquidity, and elevated risk profiles associated with these investments—especially cryptocurrencies, which are famously volatile. If the Federal Reserve deviates from forecasted rate cuts or signals tighter monetary policy, risk assets like Bitcoin could see abrupt reversals. While policy changes create opportunities, they also introduce new uncertainties, and sharp swings in regulatory sentiment or macroeconomic indicators could trigger significant volatility. Ultimately, despite today’s optimism, Bitcoin remains a highly volatile asset.
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In the past, Bitcoin prices have often correlated with the money supply in the economy. Source: XTB
As Bitcoin appreciates, we are seeing inflows into ETFs, which have seen the highest growth dynamics since mid-July. Source: XTB
Bitcoin maintains a dynamic uptrend, which was recently tested by a retest of the 50-day EMA (blue line on the chart). However, as long as the price remains above this level, the trend remains technically stable. The price is approaching recent all-time highs, and this zone could now serve as a key resistance point. Source: xStation
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