Bitcoin hits $124,000 & Soon You Might Get to Hold BTC in Your 401(k)

There’s never a dull moment in Bitcoin, even at the height of summer. Here’s what’s been happening! 

TL;DR

• President Trump signed an Executive Order that would enable alternative investments, such as Bitcoin and other digital assets, to be added to 401(k) plans. 

• Bitcoin reacted extremely positively, reaching a new all-time high and surpassing $124,000 for the first time. 

• Bitcoin treasury companies continue their Bitcoin allocation run, now holding over 1.85 million BTC combined. 

Bitcoin Breaks Above $124,000 for the First Time in History! 🚀

Bitcoin hit yet another all-time high! 

If this is your first bull market, get used to this feeling. 😊

On August 14th, BTC crossed $124,000 for the first time, reaching a new all-time high of $124,128. 

The price of Bitcoin rallied after the news of an Executive Order, signed by President Trump, that would enable investors to add alternative investments such as real estate interests, private-market investments, and digital assets to their 401(K). 

I'll go into the details of this news in the next part of the newsletter. 

Bitcoin ETF buyers also jumped on the opportunity to buy more of the orange coin, which ETF inflow data clearly shows.

In fact, BlackRock's IBIT fund is the second-best ETF in monthly inflows (after Vanguard’s VOO S&P 500), and there is no slowing down in sight. 

Additionally, when zooming out, all Bitcoin ETFs combined had an incredible summer, with only two out of eleven weeks experiencing a net outflow. 

President Trump Issues Executive Order to Add Digital Assets and Other Alternative Assets to 401(k)s 🤯

Earlier in August, President Trump signed an Executive Order, enabling investors to allocate private market investments, real estate interests, and digital assets to their 401(k) plans. 

The White House wants to: 

"…Relieve the regulatory burdens and litigation risk that impede American workers' retirement accounts from achieving the competitive returns and asset diversification necessary to secure a dignified, comfortable retirement."

Additionally, you can now add the following investments to your 401(k): 

If the Secretary of Labor has no issues with the Executive Order within the next 180 days, it’ll be sent to Congress and then to the Senate for a vote. 

Considering that we recently saw the GENIUS Act get written into law and how forward-thinking the Administration is regarding crypto, I wouldn't be surprised if this gets passed, too. 

Bitcoin Treasury Companies Hold Over 1.85 Million BTC Combined! 🔥

I couldn’t send a Proof of Words newsletter without mentioning Bitcoin treasury companies.

After all, they’re all the rage right now. 

Combined, all these Bitcoin treasury companies now reportedly hold over 1.85 million BTC!  

As you can see in the chart above, that number has been steadily increasing since November 2024, and they buy roughly 100,000 BTC a month. 

If we speak in Bitcoin network terms, all treasury companies combined hold roughly 8.8% of the entire 21 million coins. 

Most of that growth spurt can be attributed to Strategy, which, as the largest public holder of Bitcoin, has demonstrated to other companies that the Bitcoin strategy not only works but also has revealed a new use case for BTC. 

Your fellow stacker in Sats, 

Patrick Lowry

Disclaimer: The opinions expressed in this newsletter are solely those of the author and do not necessarily represent the views of any associated company. This newsletter is for educational and informational purposes only and should not be construed as investment, financial, or any other professional advice. Investing in cryptocurrencies is highly speculative and carries a significant risk of substantial financial loss, so you must conduct your own thorough research and consult with independent professional advisors before making any decisions.