Cryptocurrency markets experienced dramatic gains Sunday evening as Bitcoin topped $122,000 and Ethereum achieved its strongest performance since December 2021, propelled by President Donald Trump's executive order authorizing digital asset investments in 401(k) retirement plans. The Block reported the surge followed sustained institutional buying and optimistic regulatory developments.

Crypto stocks jumped in morning trading on Monday. BNC rose 25%; BMNR rose 21%; SBET rose 8%; BTBT rose 6%; COIN and MSTR rose 5%; MARA and RIOT rose 4%; CRCL rose 3%.

"Crypto [saw] a rebound in prices this week, led by headline statements from Trump ordered regulators to 'look into' the possibility of including crypto (and private equity) into 401k portfolios," Augustine Fan, Head of Insights at SignalPlus said.

Trump's Thursday executive order directed the Labor Department to examine pathways for incorporating cryptocurrency, private equity, and alternative investment vehicles into 401(k) retirement frameworks.

Fan explained that providing millions of American retirement accounts access to higher-risk cryptocurrency investments could generate substantial purchasing demand.

Beyond the retirement account announcement, Bitcoin benefited from continued spot exchange-traded fund capital inflows, attracting another $253 million in net investments this week, sustaining demand momentum despite market consolidation following last month's record peak.

Ethereum soared to levels not witnessed since December 2021, primarily powered by institutional investment appetite. Spot Ethereum ETFs captured greater capital flows than Bitcoin ETFs, securing $461 million over the past week.

"That has triggered massive, short liquidations and put Vitalik Buterin back in the billionaire club," Rachael Lucas, crypto analyst at BTC Markets, said. "With momentum, inflows, and headlines all on its side, ETH has a strong case for challenging its previous all-time highs."