Bitcoin Futures Open Interest Increases with Trump's Crypto-Friendly Orders, Later Decreases
In a significant development for the cryptocurrency market, U.S. President Donald Trump's executive orders aim to ease regulations for cryptocurrency investments in 401(k) plans and prohibit the debanking of crypto-related initiatives[1][3][5].
Trump's August 7, 2025 executive order directs the U.S. Department of Labor to reexamine and potentially ease regulations under ERISA regarding alternative investments in 401(k) plans, explicitly including cryptocurrency[1][3][5]. This move could lead to increased long-term demand and investor confidence in Bitcoin and other cryptocurrencies as institutional investors begin to view crypto as a mainstream asset class for retirement savings.
The broader policy stance underpinning Trump’s executive orders aims to facilitate crypto access and reduce regulatory hurdles for crypto integration into established financial systems[3]. This would alleviate a major source of crypto market uncertainty caused by banking restrictions and enhance liquidity and adoption.
Gerry O'Shea, head of global market insights at Hashdex, acknowledges that the developments from the White House are "collectively legitimizing" crypto in the eyes of investors[6]. Despite the pressure on the bulls in the short term, O'Shea believes the White House developments are beneficial for Bitcoin[6].
In the near term, the impact of Trump's executive orders on Bitcoin's price may not be substantial, according to O'Shea. He states that while the news is positive for the industry and investors, he does not anticipate Trump's actions alone having an outsized impact on near-term prices[6].
However, over the next 12 months, the executive order and related regulatory shifts could contribute to a positive price effect on Bitcoin by increasing institutional participation and demand, reducing regulatory risks, and supporting a long-term narrative of crypto as a legitimate and regulated asset class within retirement and investment portfolios[1][3][5].
The recent price surge for Bitcoin is evident, with the top crypto jumping 2.3% from Thursday's open to set a daily high of $117,580[2]. This surge has led to a surge in open interest in Bitcoin futures, with open interest surging from about $9.71 billion to more than $10 billion in the hours after Trump's announcement[4].
Despite the bullish outlook, market volatility remains elevated, as indicated by the pullback in open interest and the elevated cumulative volume delta[6]. Nearly $300 million in short positions were liquidated after Thursday's announcement[7].
Looking ahead, O'Shea predicts strong performance for those who invest in crypto over the next 12 months, with the price of Bitcoin potentially reaching $140,000 or higher this year[6]. Bitcoin is currently trading at around $117,000, according to CoinGecko data[8].
In conclusion, Trump's executive orders remove key regulatory barriers and open the door for broader crypto adoption within retirement investing and finance ecosystems, which is typically bullish for Bitcoin’s medium-term price outlook, but the full impact may unfold slowly and unevenly over the coming year[1][3][5].
References:
- CoinDesk
- CoinGecko
- Cointelegraph
- CoinGlass
- Forbes
- Bloomberg
- Glassnode
- CoinGecko
- The U.S. President's executive orders aim to ease regulations for cryptocurrency investments in 401(k) plans, which could lead to increased investor confidence in Bitcoin and other digital assets.
- Trump's executive orders also aim to facilitate crypto access and reduce regulatory hurdles for crypto integration into established financial systems, potentially supporting a long-term narrative of crypto as a legitimate and regulated asset class.
- Gerry O'Shea, head of global market insights at Hashdex, believes Trump's executive orders are beneficial for Bitcoin, despite potential short-term market volatility.
- The recent price surge for Bitcoin is evident, with the top crypto reaching a daily high of $117,580, following Trump's announcements.
- Looking ahead, O'Shea predicts strong performance for those who invest in crypto over the next 12 months, with the price of Bitcoin potentially reaching $140,000 or higher this year.
