Crypto Market Boost: Trump's Crypto 401(k) Order, Ethereum's Rise, and Altcoin Season Peak

Crypto Market Sees Uptick Post President Trump’s Signature on New Crypto Legislation

In recent developments, the cryptocurrency market experienced an upward surge over the weekend that spilled into Monday, August 1. This surge in the crypto market was a result of President Donald Trump signing an executive order to include digital currencies in 401(k) retirement plans late last week.

Ethereum Experiences Impressive Growth

Large-cap cryptocurrencies, particularly Ethereum (ETH), capitalized on this market upturn significantly. After a period of relative stagnation, Ethereum broke past the $4,200 barrier, a first since December 2021. This leap came on the heels of the announcement of public ETH treasury firm, Fundamental Global, filing a $5 billion shelf registration with the SEC (Securities and Exchange Commission). As of now, Ethereum’s price has escalated to approximately $4,350, indicating a near 3% rise on a daily scale and about a 20% increase over the past week.

Performance of Other Cryptocurrencies

Bitcoin (BTC), often considered the market leader, saw a high of $122,227 recently before making a slight retreat to stabilize at $120,500. Nonetheless, a 1.5% rise on the day and a 5% increase over the past week were recorded. On the other hand, Ripple (XRP), despite facing a tumultuous legal battle with the SEC, maintained a stable trading rate of $3.21 over the past 24 hours. Another crypto giant, Solana (SOL), despite seeing almost no change in price, increased nearly 9% over the past week. It is noteworthy that the total cryptocurrency market capitalization recorded a 1.2% increase over the past 24 hours, thereby surpassing the $4 trillion mark. This symbolizes a new all-time high for the market of $4.144 trillion.

Bitcoin Dominance Slips

The dominance of Bitcoin in the crypto market has seen a slight dip, clocking in at approximately 58.6%. This could signal a potential shift in the crypto market dynamics. In the last 24 hours alone, nearly $419 million in crypto positions were liquidated, with Ethereum and Bitcoin accounting for the bulk of these liquidations.

The Onset of Altcoin Season

Ray Yossef, CEO of crypto platform NoOnes, likened the volatility of the crypto world to changing seasons. The market has seen a significant rise in larger-cap altcoins, marking the start of the altcoin season. In fact, more than 30 altcoins have outpaced Bitcoins growth over the last 90 days.

Spotlight on Other Performers

Other noteworthy altcoin movers include Zora (ZORA). This token, issued by the Zora protocol, witnessed a sharp rally recently. Other cryptos like Lido DAO (LDO) and memecoin launchpad Pumpfun’s native token PUMP also reported double-digit gains.

Growth of Crypto Investment Funds

Crypto investment funds saw a significant shift last week. Earlier in the week, they lost $1 billion on weak U.S. jobs data, but reversed this with an influx of $1.57 billion following the new executive order. Ultimately, total net inflows for the week amounted to $572 million.

Ethereum Takes the Lead

Significantly, Ethereum products brought in the most money at $268 million, pushing this year’s total to a record $8.2 billion. This was followed closely by Bitcoin products with $260 million. In conclusion, the recent executive order by President Trump has opened new doors for cryptocurrencies in the market. The upward trend in the market and the growing influence of altcoins signal exciting times ahead for the world of digital currencies.