Bitcoin (COIN:BTCUSD) extended its recent rally on Friday, boosted by U.S. President Donald Trump’s new executive order aimed at broadening the range of alternative assets, including cryptocurrencies, allowed in 401(k) retirement plans.
Altcoins outperformed Bitcoin, with Ether approaching its 2021 all-time highs and XRP surging after the resolution of its long-running lawsuit with the U.S. Securities and Exchange Commission.
However, despite the positive momentum, cryptocurrencies faced some volatility amid growing concerns over global risk sentiment following the implementation of Trump’s tariffs on key trading partners. Bitcoin also fell short of its intraday peak during the trading session.
As of 01:47 ET (05:47 GMT), Bitcoin was up 1.7%, trading around $116,570.
Trump’s directive opens door for alternative assets in retirement accounts
The executive order opens up opportunities for alternative asset managers to increase their share in the massive U.S. retirement market. It also facilitates easier access for investors to include alternative assets in their defined contribution plans.
Trump claimed that “regulatory overreach and litigation risks” have previously limited retirees’ ability to earn higher returns by investing in alternative assets. Critics, however, warn that such investments carry greater risks and may not be suitable for long-term retirement portfolios.
The move fits within Trump’s broader pro-crypto agenda, which included several crypto-friendly regulatory changes earlier this year.
The announcement helped Bitcoin push above the $110,000 to $115,000 trading range it had been confined to since late July.
Still, more significant gains were elusive, with spot Bitcoin ETFs seeing four straight days of capital outflows. Profit-taking following July’s record highs and concerns over Trump’s tariffs kept some buyers cautious.
Crypto market snapshot: Ether nears $4,000; XRP jumps on legal resolution
Other cryptocurrencies showed stronger gains Friday, recovering much of last week’s losses.
Ether, the second-largest crypto by market cap, climbed 5.6% to $3,902.01, closing in on its 2021 peak above $4,000.
The surge was driven in part by an increasing number of companies adding Ether to their corporate treasuries, mirroring moves by Bitcoin holders like MicroStrategy. This approach has proven profitable for Michael Saylor’s firm, which saw remarkable share price gains over the past year.
XRP rallied 10.5% to $3.31, hitting a near three-week high.
The rise came after Ripple and the SEC agreed to settle their lengthy legal dispute — a development expected after Trump appointed more crypto-friendly officials to the SEC and shifted regulatory oversight of crypto to the Commodity Futures Trading Commission.
Other notable gains included Solana’s 3% rise and Cardano’s 7.1% jump.
Among meme coins, Dogecoin climbed 7.1%, and $TRUMP rose 3.1%.
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