- Trump’s 401 (K) Crypto movement could feed more demand for BTC than ETFs.
- Glassnode projected that it can harvest $ 120k, because the profitable activities remained modest.
The Trump administration has guidance of a BIDen era relaxing that pension plans, 401 (K), has blocked to invest in in Bitcoin [BTC] And other cryptocurrencies.
In one rack On 28 May, the Department of Labor withdrew the 2022 Directive that warned of ‘extreme care’ before Crypto was included in 401 (K) investment plans.
However, the agency clarified that the U-turn does not mean that an approval of digital assets but a neutral attitude.
New question for BTC?
Most ETF analysts and asset managers regarded the update as a new massive angle for BTC. Bitwise Europe Research, Angre Dragosch, said”
“This was by far the bigger news today. About $ 8.9 trillion is managed in 401k plans in the US Bitcoin asks income.”
For his part, Ryan Rasmussen, another Bitwise Top analyst, noted That a question of 1% of 401K’s ETF inflow could exceed.
“If only 1% of the $ 8 trillion flows into 401K funds in Bitcoin, that is $ 80 billion in new demand and 2x more than what has flowed in Bitcoin ETFs.”
For Perspectief, BTC doubled from $ 36k to $ 72k in the Q1 2024 after US Spot ETF’s debuted. In general, it has been active since the beginning of 2024 almost 180% to more than $ 110k. But it has briefly withdrawn to $ 107k at the time of the press.
BTC to watch $ 120K, says Glassnode
However, according to Glassnode, BTC could, however, on the chain signals for the chains. In his weekly on-chain report on May 28, the company said”
“In the case of further upward, the level of $ 120K appears as an important interest zone, where the pressure-side pressure is expected to accelerate in and around this zone based on price models for chains that intersected in earlier cycles.”
Source: Glassnode
The $ 120k projection of the company was based on MVRV Extreme Deviation Printing Bands. In the beginning and end 2024 consolidated BTC price between extreme tires (red and orange). This currently translated to $ 120k and $ 100k.
However, it is worthwhile to point out that the profitability of STH (short-term holders) has risen 16% per sopricator.
But cryptoquant’s Axel Adler noted That sales pressure was relatively muted to threaten the profitable activity of the past to threaten BTC to climb higher.
Source: Cryptuquant
In other words, the decrease from more than $ 111k to $ 107k is perhaps a short cooling for a potential repair.
That said, the nearest price magnet in the short term was the liquidity pool between $ 104.4k and $ 106.2k. More than $ 5 billion livered lungs were piled up in this region, which raised liquidation risks if BTC glides to $ 103k.
Source: Coinglass
On the other hand, no less than $ 10 billion in Hefbroek Shorts can be wiped away when BTC jumps to $ 113k.