• President Donald Trump's tenure has been positive for crypto investors. • Trump has removed barriers and appointed crypto supporters in his cabinet and advisers. • The government has just announced a number of initiatives that could lead to the government's purchase of the world's largest cryptocurrency. • Our 10 Favorite Stocks Are Better Than Bitcoin ›President Donald Trump's election victory in November has become a crypto investor's dream, especially for those who invest in Bitcoin, the world's most valuable cryptocurrency, (CRYPTO: BTC). Since Trump's victory last November, Bitcoin has risen nearly 60% ( as of May and has surpassed $111,000 multiple times. Trump has surrounded himself with pro-crypto advisers and appointed a former head of a financial and crypto consulting firm to head the Securities and Exchange Commission. He also announced the creation of a U.S. strategic bitcoin reserve to hold the bitcoin currently owned by the government, and possibly even more. And Trump has just brought more good news for Bitcoin investors. Will Bitcoin be in your retirement account anytime soon? During former President Joe Biden's presidency, the Department of Labor issued guidance to U.S. companies warning them to be "extremely cautious" before allowing employees to invest in cryptocurrencies through 401)k( savings accounts. At this stage of its development, cryptocurrencies are subject to extreme price fluctuations, which may be due to the many uncertainties associated with the valuation of these assets, speculation, the number of fictitious transactions reported, widely published incidents of theft and fraud, and other factors. Extreme volatility can have a devastating impact on participants, especially those nearing retirement and those with large allocations to cryptocurrencies. Guidance from federal agencies is not law, but it tends to have a sobering effect, as companies often fear that they may be scrutinized if they violate official guidance. Official White House photo, photo by Joyce M. N. Bogosian. The Trump administration has now withdrawn this guidance, which is more or less a green light for employers to consider offering crypto or crypto-related investments to their employees if they wish. However, the current Labor Department added that it "neither supports nor opposes" crypto investments in 401)k( accounts. Another potential tailwind in 2024, the U.S. Government Accountability Office found that while some 401)k( programs offer workers the opportunity to invest in cryptocurrency, actual investment remains low. The story continues, however, the Trump administration's new guidelines and friendliness towards cryptocurrencies could change that, creating another positive factor for Bitcoin and the industry. Most crypto experts believe that widespread adoption by more mainstream financial institutions will help drive cryptocurrency prices higher. By the end of 2024, the total retirement savings in 401)k( plans exceeded $8.9 trillion, so even the gradual increase in cryptocurrency purchases from this group could have a significant impact. Now, whether investors should consider adding cryptocurrencies to their 401)k( accounts is another question. Last year, Blackstone, the world's largest asset manager, released a report on whether Bitcoin should be included in a multi-asset portfolio. The final conclusion was that Bitcoin could consume a similar allocation to Goofy's "Seven Wonders" stock. According to the report: These stocks [the Big Seven] represent single portfolio holdings, and like Bitcoin, they account for a relatively large share of portfolio risk. In a traditional portfolio consisting of a mix of 60% equities and 40% bonds, the average share of the seven stocks in the overall portfolio risk is about the same as the 1-2% Bitcoin allocation. We believe this is a reasonable range of Bitcoin exposure. Bitcoin is now seen by many as a synonym for digital gold, and therefore as a tool against inflation and as a safe haven due to the growing fiscal problems in the United States. For this reason, I think it makes sense to allocate some Bitcoin modestly to your portfolio, as it provides a form of diversification with stocks and bonds. Bitcoin has shown resilience and some characteristics similar to gold, such as its limited supply of 21 million tokens. In my opinion, Bitcoin is currently the only cryptocurrency that deserves a small allocation in 401)k( account. Any other cryptocurrency has proven its volatility and has not exhibited any real attributes that would make a multi-asset portfolio safer. Should you invest $1,000 into Bitcoin right now? Before you buy Bitcoin stock, consider the following: Now, it's worth noting that the stock advisor has an overall average return of 979% – an outperformance compared to the S&P 500's 171%. Don't miss the latest Top 10 list and join a stock advisor to get it. View 10 Stocks » Originally published by The Motley FoolView Comments*Stock Advisor ReturnsAs of June 2, 2025Bram Berkowitz holds Bitcoin. The Motley Fool holds and recommends Bitcoin. The Motley Fool for Dummies has a disclosure policy.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
• President Donald Trump's tenure has been positive for crypto investors. • Trump has removed barriers and appointed crypto supporters in his cabinet and advisers. • The government has just announced a number of initiatives that could lead to the government's purchase of the world's largest cryptocurrency. • Our 10 Favorite Stocks Are Better Than Bitcoin ›President Donald Trump's election victory in November has become a crypto investor's dream, especially for those who invest in Bitcoin, the world's most valuable cryptocurrency, (CRYPTO: BTC). Since Trump's victory last November, Bitcoin has risen nearly 60% ( as of May and has surpassed $111,000 multiple times. Trump has surrounded himself with pro-crypto advisers and appointed a former head of a financial and crypto consulting firm to head the Securities and Exchange Commission. He also announced the creation of a U.S. strategic bitcoin reserve to hold the bitcoin currently owned by the government, and possibly even more. And Trump has just brought more good news for Bitcoin investors. Will Bitcoin be in your retirement account anytime soon? During former President Joe Biden's presidency, the Department of Labor issued guidance to U.S. companies warning them to be "extremely cautious" before allowing employees to invest in cryptocurrencies through 401)k( savings accounts. At this stage of its development, cryptocurrencies are subject to extreme price fluctuations, which may be due to the many uncertainties associated with the valuation of these assets, speculation, the number of fictitious transactions reported, widely published incidents of theft and fraud, and other factors. Extreme volatility can have a devastating impact on participants, especially those nearing retirement and those with large allocations to cryptocurrencies. Guidance from federal agencies is not law, but it tends to have a sobering effect, as companies often fear that they may be scrutinized if they violate official guidance. Official White House photo, photo by Joyce M. N. Bogosian. The Trump administration has now withdrawn this guidance, which is more or less a green light for employers to consider offering crypto or crypto-related investments to their employees if they wish. However, the current Labor Department added that it "neither supports nor opposes" crypto investments in 401)k( accounts. Another potential tailwind in 2024, the U.S. Government Accountability Office found that while some 401)k( programs offer workers the opportunity to invest in cryptocurrency, actual investment remains low. The story continues, however, the Trump administration's new guidelines and friendliness towards cryptocurrencies could change that, creating another positive factor for Bitcoin and the industry. Most crypto experts believe that widespread adoption by more mainstream financial institutions will help drive cryptocurrency prices higher. By the end of 2024, the total retirement savings in 401)k( plans exceeded $8.9 trillion, so even the gradual increase in cryptocurrency purchases from this group could have a significant impact. Now, whether investors should consider adding cryptocurrencies to their 401)k( accounts is another question. Last year, Blackstone, the world's largest asset manager, released a report on whether Bitcoin should be included in a multi-asset portfolio. The final conclusion was that Bitcoin could consume a similar allocation to Goofy's "Seven Wonders" stock. According to the report: These stocks [the Big Seven] represent single portfolio holdings, and like Bitcoin, they account for a relatively large share of portfolio risk. In a traditional portfolio consisting of a mix of 60% equities and 40% bonds, the average share of the seven stocks in the overall portfolio risk is about the same as the 1-2% Bitcoin allocation. We believe this is a reasonable range of Bitcoin exposure. Bitcoin is now seen by many as a synonym for digital gold, and therefore as a tool against inflation and as a safe haven due to the growing fiscal problems in the United States. For this reason, I think it makes sense to allocate some Bitcoin modestly to your portfolio, as it provides a form of diversification with stocks and bonds. Bitcoin has shown resilience and some characteristics similar to gold, such as its limited supply of 21 million tokens. In my opinion, Bitcoin is currently the only cryptocurrency that deserves a small allocation in 401)k( account. Any other cryptocurrency has proven its volatility and has not exhibited any real attributes that would make a multi-asset portfolio safer. Should you invest $1,000 into Bitcoin right now? Before you buy Bitcoin stock, consider the following: Now, it's worth noting that the stock advisor has an overall average return of 979% – an outperformance compared to the S&P 500's 171%. Don't miss the latest Top 10 list and join a stock advisor to get it. View 10 Stocks » Originally published by The Motley FoolView Comments*Stock Advisor ReturnsAs of June 2, 2025Bram Berkowitz holds Bitcoin. The Motley Fool holds and recommends Bitcoin. The Motley Fool for Dummies has a disclosure policy.