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Trump promotes Crypto Assets 401K plan! Bitcoin approaches 122,000 USD, Ethereum breaks through 4,300 USD aiming for a new high.
US President Trump announced the possibility of incorporating crypto assets into 401K retirement plans, igniting bullish sentiment in the market. Bitcoin (BTC) prices are approaching $122,000, while Ethereum (ETH) has broken through $4,300, setting a new high since December 2021. Institutional funds continue to pour in, with strong ETF inflows, combined with favourable information in the macro economy, the market is brewing an opportunity to challenge historical highs.
Trump 401K encryption plan ignites the market
(Source: Gate)
Policy Driven: Trump signed an executive order directing the Department of Labor to study allowing Crypto Assets, private equity, and other alternative assets to be included in 401K retirement plans.
Potential Impact: Augustine Fan, Head of Insights at SignalPlus, stated that opening up crypto investments to millions of American retirement accounts could bring a significant influx of new buying pressure.
Market Reaction: BTC rose 3.33% in 24 hours, reporting at $121,852; ETH rose 1.25%, reporting at $4,300.
ETF fund inflows continue to drive BTC and ETH
Bitcoin ETF: Net inflow of $253 million this week, while in a consolidation phase, demand remains strong.
Ethereum ETF: Spot ETH ETF inflows surpass BTC ETF, attracting $461 million in funds over the past week.
Analyst's View: BTC Markets analyst Rachael Lucas pointed out that the strong momentum of ETH has triggered massive short liquidations and allowed Vitalik Buterin to rejoin the on-chain billionaire club.
Ethereum Multiple Favourable Information is Aiming for Historical New Highs
ETH's current price is only about 11% away from the historical high of $4,878 set in November 2021, and it is expected to challenge new highs in the short term, driven by the following factors:
Regulatory Tailwinds and Stablecoin Growth
The "GENIUS Act" and progress in US stablecoin regulation enhance market confidence.
Ethereum provides infrastructure for nearly half of stablecoins.
Institution Adoption Rate Increase
Banks and asset management companies like JPMorgan are accelerating their布局 of ETH.
Public companies (such as SharpLink Gaming) directly purchase ETH as treasury assets.
Spot ETH ETF Approved
Since May 2024, 9 spot ETH ETFs have been listed, attracting a large amount of traditional capital inflow.
Technical Upgrade (Pectra & Dencun)
Enhance scalability, staking efficiency, reduce transaction costs, and strengthen the utility of ETH.
Staking and DeFi Yield Potential
The ETH ecosystem provides stable staking and DeFi yield opportunities, making it not only a speculative asset but also a yield-generating asset.
Macroeconomics and Risk Alerts
Key Data: The July CPI will be announced this week (Tuesday) and PPI (Thursday)
Interest Rate Expectations: The CME FedWatch tool shows that the probability of a 25 basis point rate cut in September is 88.4%.
Risk Factors: Federal Reserve Chairman Powell stated that whether to cut interest rates depends on macroeconomic data, and investors need to be cautious of volatility caused by data falling short of expectations.
Conclusion
Trump's 401K crypto plan, along with the continuous influx of institutional funds, is driving Bitcoin and Ethereum into a new round of pump cycle. BTC targets above $122,000, while ETH is expected to challenge the historical high of $4,878. With multiple favourable information resonating from policies, funds, and technology, the "bullish horn" of the crypto market may have already sounded, but investors still need to closely monitor this week's CPI and PPI data to guard against unexpected impacts from macro variables.