Bitcoin retreated slightly on profit-taking after a 2% increase yesterday.
The renewed momentum follows an executive order by U.S. President Trump designed to expand access to alternative assets, including cryptocurrencies, within 401(k) retirement plans.
This regulatory move could potentially unlock substantial capital flows into the crypto market and permit a larger adoption of digital assets.
Other cryptocurrencies also recorded a jump in price following positive regulatory developments.
In this regard, XRP benefited from the dismissal of a protracted legal dispute between Ripple and the U.S. Securities and Exchange Commission, which has lifted significant uncertainty for investors. These regulatory clarifications are contributing to improved market confidence, laying the groundwork for a firmer foundation for the cryptomarket.
Institutional adoption also continues to be a key driver of recent gains, with inflows into Bitcoin and Ether ETFs returning to previous levels after a few days of outflows. In this regard, strong inflows could push the market to the upside and help cryptoassets reach new highs.
