07.08.2025 21:06
Positive market sentiment fueled a surge in cryptocurrency prices on Thursday, August 7th, despite the implementation of new tariffs. This bullish trend followed news that President Trump is poised to sign an executive order, significantly altering 401(k) retirement plans to include cryptocurrency investments.
Bitcoin experienced a modest 1.1% increase, reaching approximately $116,700. Ethereum demonstrated more significant gains, climbing nearly 5% to surpass $3,800. Other prominent cryptocurrencies also saw positive movement, with XRP adding 2% to trade above $3, while Solana held steady around $170.
This positive market momentum translated into a 2% increase in the total cryptocurrency market capitalization, exceeding $3.9 trillion according to CoinGecko data. Trading volume over the same period reached a considerable $141 billion. However, this period also witnessed substantial liquidations, with CoinGlass reporting over $274 million in crypto positions eliminated; $216 million in short positions and $58 million in long positions were liquidated. Ethereum accounted for the largest portion of these liquidations, at nearly $138 million, followed by Bitcoin at $36 million, and smaller capitalization altcoins at approximately $18 million.
The ETF market also saw notable activity. Spot Bitcoin ETFs experienced significant net inflows of $91.5 million on August 6th, reversing a four-day outflow trend that culminated in a record-breaking $812 million withdrawal on August 1st. Similarly, Ethereum ETFs recorded $35 million in net inflows on August 6th, a remarkable recovery following their own record-breaking $465 million outflow on August 4th, based on data from SoSoValue.
Analysts attribute this market upswing to investor optimism surrounding the anticipated executive order. The order, as reported by Bloomberg, will instruct the Department of Labor to reassess current regulations, potentially paving the way for broader cryptocurrency inclusion in 401(k) plans alongside other alternative assets. This policy shift is expected to significantly impact the cryptocurrency market and retirement investment strategies.
