Last week, BlockTrust IRA, an AI cryptocurrency retirement platform, suffered from the brutal sell-off that hit the market. Bitcoin, XRP, Ethereum, and publicly listed companies with crypto in their balance sheets all saw losses. Bitcoin fell below $70,000 to $62,000, its biggest drop since October 2024, but is now trading at $70,724.70. The sell-off has reignited debate over crypto’s place in the American retirement system.

The speed and severity of the crypto market sell-off caught many firms off guard, including BlockTrust IRA. Despite adding $70 million in IRA funds over the past year, the company found itself in the middle of the bloodbath. Chief Technical Officer Maximilian Pace emphasized the importance of a long-term perspective and analytics-based approach to weather market volatility.

President Donald Trump’s executive order in August allowed 401(k) plans to access alternative assets, including digital assets. Lee Reiners, of the Duke Financial Economics Center, noted that retirement plans indirectly gain exposure to crypto through companies like Coinbase. Concerns over lawsuits and market turmoil may deter plan sponsors from offering crypto options. Franklin Templeton’s Robert Crossley sees blockchain reshaping retirement investment management by integrating digital wealth with financial life.

The retirement industry is seen as siloed, slow-moving, and over-regulated, ripe for disruption through blockchain technology. Crossley believes on-chain wallets and tokenized assets can better integrate digital wealth with an individual’s financial life. This story was first published by TheStreet on Feb 8, 2026, in the Personal Finance section.

Read more at Yahoo Finance: Bitcoin crash sends shock to 401(k) investors