Trump's grand move: $12.5 trillion in pension funds enters the cryptocurrency market

Families, you'll never guess what your retirement savings will buy in the future! Just broke big news—the Trump administration signed an executive order allowing those safe and secure monthly 401(k) contributions to be invested in private equity, real estate, and even cryptocurrency! What a $12.5 trillion pension fund market! Once cryptocurrency investment is allowed, experts estimate the influx could reach as high as $800 billion! My goodness, is Bitcoin's current price just the beginning? Are you for or against this incredible move? The retirement account investment landscape is about to be completely reshaped. Let's delve into the details first. This executive order delivers two powerful blows: Dismantling the legal "firewall": Trump will personally order the U.S. Department of Labor to reevaluate the 50-year-old Employee Retirement Income Security Act (ERISA), clarifying that "non-mainstream assets" like cryptocurrencies, private equity, and real estate are legal channels for entering retirement accounts. Mobilizing regulatory giants: The order also requires the Treasury Department, the Securities and Exchange Commission (SEC), and other bigwigs to work overtime to quickly research how to change the rules. In particular, the SEC must give the green light, allowing ordinary people to easily purchase virtual assets in their self-managed 401(k) accounts.

Number Game: How long will this "huge influx of funds" last?

Bitwise, a top Wall Street crypto firm, puts the numbers to the test: Total assets in US 401(k)s have reached a staggering $8 trillion! Even if only 1% is allowed to be allocated to Bitcoin and other cryptocurrencies, that's $80 billion in fresh money entering the market. If a more aggressive allocation of 10% is achieved, $800 billion in liquidity will instantly flood the cryptocurrency market! 1% to 10%? The game between the two parties in the United States is a "fight between gods" Don't think that opening retirement accounts to invest in cryptocurrencies is a sudden whim! This is a grand strategy brewing in Washington for months: In fact, as early as during Trump's first term, he hinted that retirement accounts could invest in private equity. Biden immediately canceled it upon taking office, citing the high risk as inappropriate! Now, Trump is making a comeback, targeting the market gap left by Biden's "protectionist policies." The article singles out another key driver: private equity giants. Why? They've been starving for years! Traditional major donors (such as pension funds) are reaching their investment limits and desperately need new sources of funding. The $12.5 trillion retirement market is a steal! High returns? Watch out! Ordinary people's money is on the brink of danger

The Trump administration's opening has hidden risks:

1. Exorbitant management fees

   Private equity funds generally charge a 2% annual management fee plus a 20% profit share. Ordinary people who put their retirement funds in there might not even get a break!

2. Want to withdraw? No way!

   Private equity often locks up for 7-10 years. When you need cash urgently, your money is still stuck there, and you can only watch helplessly. The cryptocurrency roller coaster is no joke. Using your pension, your lifeline, to buy Bitcoin? How can you sleep soundly if the numbers in your account plummet 30% in a single day? Wall Street tycoons have long been scheming. The article reveals that major traditional asset management companies and crypto institutions have long been eyeing the lucrative 401(k) sector. Let’s not become the target of institutional “leek-cutting”!

Finally, a heartbreaking statement: Investing in areas you don’t understand = throwing money away

If you can’t even understand a candlestick chart, and the legal terms in a private equity agreement are like hieroglyphics, then I advise you—Don’t believe everything you hear!Opening up permissions doesn’t mean encouraging purchases. High-risk investments are never suitable for gambling with retirement savings! What ordinary people can do is to keep a close eye on policy implementation, account allocation ratios, and whether there are any “pitfalls” in the fee structure. Be more cautious!