Bitcoin Up to $116K as Trump Signs 401(k) Crypto Access Order, But Is It Real?
Bitcoin (BTC) went higher above $116,000 this morning after Donald Trump signed an executive order allowing 401(k) retirement accounts to invest in cryptocurrencies. The new order has brought waves of optimism into the crypto markets, and it has caused fear of a possible bull trap.
The rollout will free up over $9 trillion of capital in the U.S. retirement system, a thing that will transform the financial landscape. But they are none of them is certain that the pump will continue.
URGENT: Trump signs executive order allowing digital assets in 401(k) plans – the crypto industry’s “holy grail” is now reality!
Immediate market reaction:$BTC jumps 1% to $116K$ETH surges 5% to weekly highs$COIN +3%, crypto stocks rally$XRP +2.3% Showing steady… pic.twitter.com/5LnA969rZa— PaulBarron (@paulbarron) August 7, 2025
Trump’s Executive Order Sends Markets into Overdrive
Trump’s executive order is being seen as a landmark for crypto regulation. American employees have been permitted for the first time in history to legally invest a part of their retirement funds in Bitcoin and other cryptocurrencies.
Traders were quick to respond. Bitcoin cleared the $116K mark in the Asian session, with breathtaking spot and derivative volumes. The Crypto Fear & Greed Index soon found itself in the “Extreme Greed” area, which says a lot about the euphoric sentiment prevailing in the market.
Crypto Twitter was awash with memes, bullish forecasts, and stratospheric price targets, but old hands advise not to get overboard.
JUST IN: Bitcoin Trading $116,000
Markets are exploding as Trump prepares to sign an executive order allowing crypto in 401(k) retirement plans
• Massive step toward mass adoption
• Billions in fresh capital could pour in
• Institutional FOMO just got realYour… pic.twitter.com/kBrFZ11KJR
— Dariusz Kowalczyk (@darekinvest) August 7, 2025
A Psychological Watershed for Bitcoin
What Sydney cryptocurrency analyst Ava Ritchie succinctly summed up is that Trump’s move isn’t a policy shift, it’s a huge narrative win.
“This order is not so much policy; it’s psychological. It is saying to everyday Australians, Americans, and investors everywhere in the world that crypto is no longer on the fringe, it’s now an acceptable means for retirement,” Ritchie said.
Then she suggested that the addition of crypto into retirement planning introduces an element of apparent maturity and stability that would appeal to more conservative or otherwise dubious investors.
Warning Bells for Institutional Investors
Sentiment is still bullish, but is getting soaked by some investment heavyweights.
It has been observed that FIIs have been aggressively shorting BTC on the derivatives markets, expecting that this rally will not last. Although small traders are constantly flowing into the market with long bets, still, institutional investors stay on the sidelines.
This imbalance has prompted many analysts to call for a bull trap, as the euphoric buying pushes prices higher quickly, only for the market to reverse and close out those positions in a brief reversal.
Technical Resistance at $120K: The Next Big Test
Some of the technical analysts are closely watching $120,000. A strong break and hold above would be confirmation of a longer-term bull trend. Otherwise, it would give some room for a correction.
CryptoEdge Australia technical analyst Marcus D’Souza also said, “The $120K level is psychological, it’s technically relevant. A rejection there would see BTC fall back to $105K, potentially even below $100K again.”
Analysts eye $120K as a key level, breaking above it could signal a stronger bull run, while failure may open the door to a pullback ( Image Source: Cryptonary )
Broader Market Forces Create Uncertainty
Along with crypto news, broader macro forces are also influencing Bitcoin’s recent price action.
The U.S. Federal Reserve is very likely to cut interest rates in September, with the futures markets assigning a 92.7% probability. Meanwhile, rising tensions in US-China trade are forcing investors into so-called safe-haven assets such as Bitcoin and gold.
Whereas all of these external variables are currently working in Bitcoin’s favor, they also introduce additional volatility and uncertainty into the markets in turn.
Retail FOMO v. Institutional Restraint
This recent price rebound is being driven by the retail segment, with individual investors taking the lead. Younger investors are using Bitcoin primarily as not just a means of speculation but as insurance against inflation, currency protection, and institutional skepticism.
Institutional traders are playing a different game, however, a game of hedging, waiting for confirmation, and not trading on emotion. It is these differing styles that can cause the chaos when there is a sharp reversal in retail sentiment or larger players dumping.
Also read: Bitcoin Tanks while AI Tokens Rocket in Modified Market
Final Thoughts: Hype or History?
The latest peak at $116,000 is a milestone, triggered by institutional change, investor frenzy, and market momentum. Yet with conflicting signals from the institutions and strong resistance looming at $120K, no one can predict what will happen next.
Is this the beginning of another lore-like bull run or another temporary spike that is anyone’s guess, particularly with Bitcoin approaching that critical $120K resistance zone.
Wherever the price goes from here, this much is certain: cryptocurrency is officially on the table when it comes to mainstream discussion of long-term wealth and retirement. And that could have far more profound implications than yesterday’s headlines.
