The inclusion of digital assets in U.S. retirement plans could propel the price of the leading cryptocurrency to $200,000 by the end of the year, according to Andre Dragos, head of European research at Bitwise, in an interview with Cointelegraph.
Is Bitcoin Headed for a 2025 Peak? Or is the 4-Year Cycle Dead? https://t.co/DckFjvkJIx
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On August 7, U.S. President Donald Trump signed an order granting Americans access to cryptocurrencies through 401(k) retirement plans. Dragos suggests this development could have a more significant impact on Bitcoin’s price than the approval of spot ETFs.
He believes the initiative will bring in new capital amounting to $122 billion, based on a “conservative estimate” of 1% of the total $12.2 trillion retirement savings market.
A Bitwise survey of financial advisors revealed that most are prepared to recommend a 2.5% or 3% allocation to their clients.
Dragos anticipates that the first inflows from pension funds could begin as early as autumn. This is likely to coincide with the expected reduction in interest rates by the Fed, providing an additional growth driver for Bitcoin. According to CME FedWatch, market participants estimate an 82.9% probability of policy easing.
Major retirement plan providers BlackRock and Fidelity are also issuers of Bitcoin ETFs. According to Dragos, they have a direct economic incentive to include these products in standard client packages.
Back on August 18, Vincent Liu, Chief Investment Officer at Kronos Research, identified concerns over the Fed’s future policy as the main factor causing market correction.