Bitcoin Regains $117K as White House Greenlights Crypto in Retirement Plans, Fed Nominee Boosts Sentiment
Bitcoin rallied back above $117,000 late Thursday, recovering from a recent dip below $112,000, after two major policy developments reignited bullish sentiment in the crypto market.
The rebound was driven in part by President Trump’s newly signed executive order permitting crypto assets to be included in 401(k) retirement plans. The order, which had been anticipated for several days, marks a significant shift in U.S. retirement investment policy and could pave the way for broader retail adoption of digital assets.
Markets got an additional boost later in the day with the nomination of Stephen Miran to the Federal Reserve Board of Governors. Miran, currently chair of the White House Council of Economic Advisers, is viewed as supportive of looser monetary policy, aligning with the administration’s recent calls for rate cuts.
Fed Pivot Narrative Gains Strength
The Miran announcement followed a string of dovish signals from Fed officials earlier in the week, spurred by weak job growth data and a soft ISM Services report. Together, these developments have significantly increased market expectations for a September interest rate cut. The CME FedWatch Tool now assigns a 95% probability to a 25-basis point cut next month, up from just 38% a week earlier.
All Eyes on Jackson Hole
Investors are now looking ahead to the Fed’s Jackson Hole Symposium in two weeks, where Chair Jerome Powell’s keynote could offer further insights into the central bank’s policy direction heading into Q4.
Market Snapshot (24-Hour Performance)
- Bitcoin (BTC): +2%, trading near $117,500
- Ethereum (ETH): +5%, now at $3,867
- XRP: +3.4%, trading at $3.10
- Gold: +1% to $3,468 per ounce
- U.S. Dollar: Slightly weaker
- Equities: Mixed across major indexes
Bitcoin’s recovery underscores growing investor confidence as the regulatory environment evolves and expectations rise for a shift in monetary policy. The combined effect of increased crypto legitimacy and dovish Fed signals appears to be fueling renewed demand for digital assets.
