Bitcoin: Fed’s Crypto-Friendly Nominee, Trump’s 401k Order May Fuel Next Bull Run

Published 08/08/2025, 11:37
Updated 08/08/2025, 11:38

Bitcoin moved up again this week, helped by two key political moves in the US. First, the Trump administration is preparing an order to allow cryptocurrencies in 401(k) pension plans. Second, Stephen Miran, known for his support of crypto, has been nominated to the Fed Board of Governors.

These steps have strengthened hopes for a friendlier policy environment for digital assets and boosted market demand. In addition, the SEC’s continued positive approach to the sector is easing pressure on crypto markets.

Factors Containing Bitcoin’s Pullback

Miran’s nomination is also seen as a sign of a looser monetary policy ahead. This is good news for cryptocurrencies. Many believe the Fed’s long period of tightening is close to ending, and if a pro–free market figure like Miran joins the board, that shift could happen faster. This would be a strong boost for assets like Bitcoin, which are often viewed as a hedge against inflation.

On the other hand, the planned step for the 401(k) system could have a much bigger impact on the cryptocurrency market. The US pension system, worth trillions of dollars, is one of the largest liquidity sources in global finance. Bringing crypto assets into this framework would not only trigger a surge in demand, but also give them greater legitimacy by embedding them within institutional structures.

Such a move could mirror the boost that the ETF market gave to Bitcoin. Over time, this kind of policy shift could also deepen the link between crypto and traditional finance, helping to reduce volatility and create a more stable price environment.

However, despite these positive drivers, the uptrend still faces short-term risks. On-chain data shows a slowdown in network activity, indicating that the recent rally was driven mainly by short liquidations. A decisive break above the next resistance level will likely require stronger network engagement and higher trading volumes.

For now, recent developments have supported the crypto market and helped avert a deeper correction. Bitcoin’s short-term momentum remains strong, but its durability will depend more on sustained individual and institutional demand than on regulatory clarity.

Will Bitcoin Break Through July Resistance?

From a technical perspective, this week’s developments allowed Bitcoin to rebound after slipping below the $114,600 support. This has so far kept last week’s downtrend in check and triggered a fresh move toward the critical resistance zone.

Bitcoin Price Chart

Bitcoin is now testing the $117,000 level, a short-term support seen in July. A daily close above this zone could open the way for a move toward $120,000, with a weekly close in that band becoming key for trend strength. If a breakout occurs, the short-term target stands near $125,500. Technical indicators back this view, as EMA values are starting to turn upward and the Stochastic RSI points to a possible push toward $120,000.

The $119,000 mark within the $117,000–$120,000 range remains a key pivot. Failure to break above this level could trigger renewed selling. In that case, $114,500 will act as the first major support. A drop below this could lead to a decline toward $109,500, aligning with the 3-month EMA, and potentially further to $106,000.

Overall, sentiment around Bitcoin carries cautious optimism, supported by the potential for higher trading volumes. However, how sellers position themselves near $119,000 will likely shape the asset’s path in the coming weeks.

****

Be sure to check out all the market-beating features InvestingPro offers.

InvestingPro members can unlock a powerful suite of tools designed to support smarter, faster investing decisions, like the following:

ProPicks AI

Built on 25+ years of financial data, ProPicks AI uses a machine-learning model to spot high-potential stocks using every industry-recognized metric known to the big funds and professional investors. Updated monthly, each pick includes a clear rationale.

Fair Value Score

The InvestingPro Fair Value model gives you a clear, data-backed answer. By combining insights from up to 15 industry-recognized valuation models, it delivers a professional-grade estimate of what any stock is truly worth.

WarrenAI

WarrenAI is our generative AI trained specifically for the financial markets. As a Pro user, you get 500 prompts each month. Free users get 10 prompts.

Financial Health Score

The Financial Health Score is a single, data-driven number that reflects a company’s overall financial strength.

Market’s Top Stock Screener

The advanced stock screener features 167 customized metrics to find precisely what you’re looking for, plus pre-defined screens like Dividend Champions and Blue-Chip Bargains.

Each of these tools is designed to save you time and improve your investing edge.

Not a Pro member yet? Check out our plans here or by clicking on the banner below. InvestingPro is currently available at up to 50% off amid the limited-time summer sale.Summer Sale

Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.