The growing trend of investing retirement funds in cryptocurrencies has raised concerns among financial experts. In August 2025, President Trump signed an executive order making it easier to invest in high-risk assets, including cryptocurrency.
However, the volatility of cryptocurrency prices can have devastating consequences for investors. Historically, crypto markets have experienced boom-and-bust cycles, with prices dropping by as much as 70-80% over extended periods.
The Government Accountability Office found that five popular cryptocurrencies available to 401(k) plans are four to 12 times more volatile than the S&P 500. This means that investors can expect wild price swings, making it difficult to predict what will happen to their investments.