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Bitcoin initially jumped, but then lost steam, on Tuesday after Fidelity Investments announced it would eventually let investors add a bitcoin account to their 401(k)s.
The world’s most popular crypto
BTCUSD,
was down 1.4% near $39,600, according to Kraken, after trading just shy of $40,800 in earlier activity. Bitcoin has been highly correlated with technology and growth stocks, and sank in step with a tumble for the Nasdaq Composite
COMP,
which fell 2.5%.
The Fidelity’s move would give the 23,000 companies that use its platform to administer their retirement plans the option to put bitcoin on the menu, a move that crypto proponents see as further mainstream adoption of the digital assets, The Wall Street Journal noted. But it isn’t clear how eager employers will be to add the option, particularly after the U.S. Labor Department last month expressed qualms about adding cryptos to retirement plans.
Read more: Fidelity to allow investors to put bitcoin in their 401(k) accounts
