Market Rallies as Trump Opens 401(k) Floodgates: Crypto Daybook Americas
Crypto markets experienced a significant rally, driven by President Trump’s executive order allowing broader cryptocurrency investments in 401(k) plans. This unlocks potentially $8.7 trillion in assets, creating sustained demand. Bitcoin (BTC) saw a modest 1.3% increase to $116,500, while Ether (ETH) surged 4.6% to nearly $3,900 following SEC clarification on liquid staking. The Ethereum blockchain also hit a record for average daily transactions.
Traditional finance markets showed less dynamism. The S&P 500 dipped, while the Nasdaq saw a slight increase, highlighting the concentration of megacaps. Gold rose due to new tariffs on bullion bars. Upcoming inflation data will influence the Federal Reserve’s September interest rate decision.
Key upcoming events include FTX distributions, Coinbase Derivatives launching new futures, and Federal Reserve Governor Kugler’s resignation. President Trump faces deadlines regarding Russia’s actions in Ukraine and is hosting leaders from Armenia and Azerbaijan to sign a peace agreement. Inflation data releases are scheduled for Colombia, Brazil, and the U.S. Several crypto company earnings are also anticipated.
Token events include governance votes on BendDAO and 1inch DAO, an Axie Infinity town hall, and significant unlocks for various tokens including Immutable (IMX), Aptos (APT), Avalanche (AVAX), Starknet (STRK), Sei (SEI), Arbitrum (ARB), and Fasttoken (FTN). Pudgy Penguins (PENGU) will be listed on Arkham Exchange. The CoinDesk Policy & Regulation conference is also approaching.
Ethereum’s average daily transactions reached a record high, fueled by the SEC’s stance on liquid staking and increased institutional participation. Public companies now hold over $11 billion in ETH. BTC futures open interest remained flat, while ETH liquidations exceeded BTC and XRP. Market data shows a persistent long bias in ETH despite significant short liquidations.
Crypto equity performance varied, with some showing strong gains while others experienced losses. Spot BTC and ETH ETF flows remained significant. Memecoin outperformance was short-lived, while layer-2 tokens performed well. Finally, significant global events include Israel’s Gaza control plan and potential economic risks associated with Trump’s tariffs on Russian oil buyers.
