A sudden price surge for bitcoin, Ethereum and other leading cryptocurrencies has pushed the global crypto market above $4 trillion to a new record high.
Bitcoin (BTC) is up more than 5 per cent over the last week, while Ethereum (ETH), Solana (SOL) and Dogecoin (DOGE) have all risen by more than 10 per cent.
The price increase has pushed bitcoin close to the all-time high of around $123,000 that it saw in mid July.
The latest rally comes after Donald Trump signed an executive order to allow cryptocurrency to be included in the investments of 401(k) retirement plans.
The move, which came after lobbying from some of the world’s largest asset managers, opens the crypto industry up to the $9 trillion market for retirement funds.
“A combination of regulatory overreach and encouragement of lawsuits filed by opportunistic trial lawyers has stifled investment innovation,” President Trump said in the order.
“My Administration will relieve the regulatory burdens and litigation risk that impede American workers’ retirement accounts from achieving the competitive returns and asset diversification necessary to secure a dignified, comfortable retirement.”
The US president has previously stated his intention to make the United States the “crypto capital of the world”, having courted the industry during his campaign last year.
In March, his announcement that five cryptocurrencies would be included in a US strategic reserve triggered another price surge that added half a trillion dollars to the crypto market.
Having now risen above the $4 trillion threshold for the first time, the crypto market now ranks above Microsoft and Apple in terms of market capitalisation, with only AI chip maker Nvidia and gold placed above it.
Bitcoin alone, with a market cap of $2.4 trillion, is worth more than Amazon, silver and Facebook-owner Meta.
President Trump’s 401(k) announcement could see the cryptocurrency’s record-breaking rally continue into the latter half of 2025, according to some market experts.
“This is yet another breakthrough moment for crypto,” Nigel Green, CEO of financial advisory firm deVere Group, said in a note shared with The Independent.
“Retirement savings are one of the most conservative pools of capital in existence. If crypto can earn its place there, it can earn its place anywhere. This order breaks the psychological and regulatory barrier that’s kept crypto in a sandbox, but now it’s mainstage.
“That main stage is vast: US 401(k) accounts represent the deepest individual investment pool in the world. Even a modest portfolio allocation to crypto could unleash hundreds of billions of dollars in new demand for digital assets.”
