When we look at the world today, any bank account that has gotten to the stage of retirement is an account that has little to no idea on crypto currencies. It is announced that President Trump prepares to sign an executive order to allow retirement accounts to take part in investing into cryptocurrencies. These accounts are said to be about 401k accounts, going beyond the traditional investment of stocks like gold and its likes.
If this order is signed, what will be its effect on the market?
I think this will be good news for Bitcoin but we might also see a lot of sell-off.
401K accounts collectively represent trillions of dollars. Even a small percentage allocated to Bitcoin could mean a massive injection of capital into the market. But here's the thing, we cannot expect everyone to be a hodler. Risk-averse investors will want to make sure their money is safe and they might trade the Bitcoin in for something else as soon as they get it. Obviously they care more about their well-being in retirement than for the future price of Bitcoin.
Not to mention all the new regulations that we can expect from the SEC after such an implementation.