The Crypto Assets market is showing a positive trend today, with the Fear and Greed Index rising significantly, and Bitcoin leading many alternative coins to start pumping. It is worth following that the proportion of long-term holders (holding period over 1 year) has rebounded to 61.64%, which indicates that the market may continue to maintain a good momentum.

The most significant positive news recently is undoubtedly that the U.S. 401(k) retirement accounts are now allowed to invest in Crypto Assets and other emerging assets. This decision is a milestone, marking the formal entry of Crypto Assets into the U.S. pension system, which not only enhances its legal status but also improves market liquidity and overall sentiment.

For the cryptocurrency allocation of the 401(k) account, the industry generally believes that a ratio of 1%-2% is reasonable. However, from a practical standpoint, it may not be until the first half of 2026 that we see substantial building positions in some large 401(k) plans. The influx of large-scale funds may not truly manifest until the second half of 2026 or even 2027.

It should be noted that the entry of long-term funds is unlikely to deliberately wait for a bear market as some predictions suggest, nor is it likely to suddenly buy in large quantities at the peak of a bull market. On the contrary, they are likely to gradually enter the market over the next 12 to 36 months, or even longer. Therefore, while this policy change has far-reaching implications, its effects will mainly gradually manifest over the next 2 to 4 years, rather than being immediate.

Current market indicators show that the proportion of long-term holders (holding for more than 1 year) has reached 61.64%. Typically, when this indicator is below 58%, the market is considered to be in a high-risk state. The current data suggests that the market is gradually stabilizing, and investor confidence is recovering.

As Crypto Assets gradually become integrated into the mainstream financial system, we can expect more institutional investors and long-term funds to enter this field in the future. This will not only benefit the stability of the market but also drive the maturation and development of the entire Crypto Assets ecosystem. However, investors still need to remain cautious, closely follow market trends and policy changes, and manage risks effectively.