**The president of the United States and his family are actively involved in selling and promoting meme coins**, signaling a significant shift in the political landscape towards cryptocurrency. The vice president's recent endorsement at a bitcoin convention in Las Vegas further cements this stance, proclaiming, *“crypto finally has a champion and an ally in the White House.”*

**The regulatory environment is also warming up to digital assets**. The new chair of the Securities and Exchange Commission, a former cryptocurrency investor and advocate, alongside the Department of Labor's recent reversal of its warning against including cryptocurrency in retirement portfolios, highlights this trend.

### **Cryptocurrency in Your Nest Egg**
Many might not realize that their retirement portfolios could already include bitcoin, indirectly through diversified index funds. Companies like MicroStrategy, now rebranded as Strategy, and Coinbase, recently added to the S&P 500, hold significant amounts of bitcoin. Tesla, another S&P 500 heavyweight, owns over $1 billion in bitcoin.

**The rise of bitcoin-heavy companies** has seen their shares trading at premiums over their actual bitcoin holdings. However, this trend is precarious, as a downturn in bitcoin's value could adversely affect these companies and their investors.

### **The ETF Boom**
Since last year, the SEC has permitted exchange-traded funds (ETFs) to hold bitcoin directly, simplifying cryptocurrency investment for individuals and institutions. BlackRock’s iShares Bitcoin Trust, holding over $72 billion in bitcoin, exemplifies this shift, ranking third among all ETFs for cash inflows in May.

**BlackRock has started integrating its bitcoin fund into investment portfolios** as an “alternative asset” to enhance diversification, signaling crypto's growing acceptance in mainstream finance.

### **Stablecoins and the Future**
Stablecoins, like those offered by Circle internet, backed by U.S. dollars, are gaining traction. Despite skepticism about their utility beyond traditional banking capabilities, legislation in Congress could significantly boost their adoption.

**Scott Bessent, the Treasury secretary, has projected a $2 trillion market for stablecoins**, backed by U.S. Treasury bills, underscoring their potential scale and the need for stringent regulation to safeguard the financial system's integrity.

### **Investment Implications**
While incorporating a small percentage of bitcoin (1% or 2%) into diversified portfolios might improve returns and reduce volatility, the inherent risks and speculative nature of cryptocurrency warrant caution. **Bitcoin's price movements, largely uncorrelated with the stock market**, offer both opportunities and risks, as seen during the 2023 Silicon Valley Bank collapse.

**Diversification remains a cornerstone of modern portfolio theory**, with cryptocurrency potentially playing a minor role. However, the prospect of a multi-trillion-dollar private cryptocurrency market raises significant concerns about financial stability and the need for robust regulatory frameworks.

Bitcoin and other digital assets are quietly growing in many nest eggs, with the encouragement of the Trump administration.

Cryptocurrency Sneaks Into Your Retirement Funds – Are You Even Aware?

**Ether** experienced a significant drop, while **Bitcoin** remained stable following President Donald Trump's announcement of US bombers attacking Iran’s three main nuclear sites. 

### Market Reaction
Ether, the second-largest cryptocurrency, plunged as much as **7.7%** to around **$2,200**, marking its lowest intra-day level since May 9. Despite some recovery, the token struggled to regain its losses. Bitcoin briefly dipped below **$101,000** but stabilized shortly after, showing resilience amidst the geopolitical turmoil. With traditional markets closed over the weekend, cryptocurrencies were the only asset class to react immediately to the news.

### Geopolitical Tensions and Market Sentiment
Caroline Mauron, co-founder of Orbit Markets, noted, *"Markets are nervously eying ongoing geopolitical developments."* She highlighted key levels to watch: **$100,000 for Bitcoin** and **$2,000 for Ethereum** over the weekend. Attention is expected to shift to oil prices once traditional markets reopen.

### The US Strikes on Iran
President Trump confirmed the attacks on Fordow, Natanz, and Isfahan, emphasizing the use of a **"payload of BOMBS"** on Fordow, a critical site for uranium enrichment. This move has intensified concerns over Iran's nuclear capabilities and potential global repercussions.

### Liquidation and Market Bottom
Cosmo Jiang of Pantera Capital Management observed, *"The overhang of whether the US would strike Iran caused a selloff through the week and into the weekend."* With the strikes now confirmed, prices may have found a **local bottom**, suggesting a potential stabilization or rebound.

### Liquidation Data
Over the past 24 hours, **$679 million** in crypto bets were liquidated, with **$554 million** in long positions and **$67 million** in short positions closed, according to Coinglass data.

### Bitcoin's Role in Geopolitical Uncertainty
Jiang also noted that Bitcoin often **"leads the market out of a bounce"** during times of geopolitical uncertainty, underscoring its perceived role as a hedge in turbulent times.

Ether fell sharply while Bitcoin held steady after President Donald Trump said US bombers attacked Iran’s three main nuclear sites.

4 days ago Bitcoin Articles Digested