31.03.202612:15 Forex Analysis & Reviews: Cryptocurrencies could soon be allowed in 401(k) plans

Meanwhile, as Bitcoin heads downward, the US Department of Labor is moving toward a potentially revolutionary change in the rules for retirement savings, considering the inclusion of cryptocurrencies and other alternative assets in 401(k)-style pension plans.

This initiative, in line with the executive order signed by President Donald Trump, opens the door to a potential influx of colossal funds into the crypto market. We are talking about a market of approximately $10.1 trillion, which makes this proposal one of the most significant in the history of digital asset regulation.

The essence of the proposal is to give pension plan managers the ability to diversify their clients' portfolios by adding not only traditional stocks and bonds, but also assets such as Bitcoin and other tokens. This carries both enormous potential for growth in the crypto market and certain risks that the regulator intends to consider carefully. Plan managers would be required to conduct thorough assessments of all aspects related to such investments, including their riskiness, liquidity, associated fees and overall management complexity.

This initiative could become a powerful driver of capital inflows into the crypto market. However, cryptocurrency volatility could lead to substantial losses, and including them in retirement plans designed for long-term saving could jeopardize retirees' financial stability. Weighing the pros and cons, as well as developing robust investor-protection mechanisms, will be key tasks for the Department of Labor on the way to implementing this proposal.

Trading recommendations:

Regarding Bitcoin's technical picture, buyers are currently targeting a return to $69,100, which opens a direct route to $70,700, and from there to $72,500. The most distant target is the high around $74,600, the breach of which would signal attempts to return to a bullish market. In the case of a decline, I expect buyers at $66,900. A drop below that area could quickly push BTC toward $64,900. The furthest target would be around $62,600.

Regarding Ethereum's technical picture, a clear consolidation above $2,098 opens a direct route to $2,175. The most distant target is the high near $2,238, the breach of which would indicate strengthening bullish sentiment and a return of buyers' interest. In the case of a decline, I expect buyers at $2,023. A drop below that area could quickly send ETH toward $1,936. The furthest target would be around $1,845.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.