Key Points
- The total crypto market cap has crossed $4 trillion and is led by Bitcoin and Ethereum gains.
- U.S. regulatory clarity boosts investor sentiment and drives stronger ETF inflows.
- Experts expect a short-term consolidation, but are still fully bullish on the long-term adoption.
The crypto market is making headlines once again. This time for smashing through the $4 trillion mark in total crypto market cap. This significant milestone has confirmed what many already believe:
At its peak on Friday morning, the market value of all cryptocurrencies hit $4 trillion before pulling back slightly. This growth shows an ongoing rise in confidence, thanks to market performance and clear regulatory moves in the U.S.
Bitcoin and Ethereum Lead the Crypto Market Cap Rally
Bitcoin and Ethereum are currently at the center of the ongoing surge of the crypto market cap. As of Friday, Bitcoin was trading above $120,000.’
On the other hand, Ethereum had jumped over 6% in 24 hours to reach $3,647. CoinMarketCap shared this data. These two assets comprise over 70% of the total crypto market cap.
Bitcoin’s market cap alone hit $2.4 trillion, while Ethereum climbed to about $440 billion. Even after a slight pullback, both remain strong positions, and institutional demand has been a major driving force.
Institutional Inflows Fuel Growth of Crypto Market Cap
Institutional investment is the biggest driver behind the recent surge in the crypto market cap. On Thursday alone, spot Bitcoin ETFs recorded $522.6 million in inflows. With this, BlackRock’s IBIT captured nearly $497.3 million.
Ethereum is seeing a similar trend. Over the past week, spot Ethereum ETFs brought in $1.7 billion, including $726 million in a single day. These figures stand as the largest inflows since December of last year.
This shows that large investors are placing long-term bets on crypto. This wave of capital has helped fuel the current rally and has pushed prices and total market cap higher.
U.S. Regulation And Investor Confidence
Crypto laws in the US are changing quickly and are playing a massive role in boosting the ongoing market sentiment. The House of Representatives recently passed the GENIUS Act alongside the CLARITY Act.
The former lays out the country’s first federal framework for stablecoin. Conversely, the Latter sets clear legal guidelines for treating crypto assets.
Both bills have seen strong bipartisan support and are now headed to President Trump. The crypto community is calling this week “crypto week” in Washington, thanks to the wave of regulation. In essence, things are expected to become even more bullish soon..
$9 Trillion in 9 months?
While Bitcoin remains the top crypto asset, Ethereum is gaining ground fast. As investors rotated into altcoins, the cryptocurrency’s dominance increased from 9% to 11%.
Analysts believe we could enter another “altcoin season,” where higher-risk assets outperform Bitcoin. Despite the excitement, not everyone expects the rally to continue without pause.
Bitcoin’s price surge above $120,000 has triggered some degree of profit-taking. According to QCP Capital, a brief dip toward $110,000 could provide a healthier base for the next leg of the rally.
During this “next leg”, Bitcoin could be headed towards anywhere between $100,000 and $250,000. With this, analysts call for prices as high as $18,000 for ETH.
If this happens, the crypto market cap could climb further. It could even hit levels as high as $6-$9 trillion within the next 9 months. Crossing the $4 trillion mark in total crypto market cap has been a significant milestone for the industry.
So far, Bitcoin and Ethereum are proving to be the leaders of this new revolution. Through it all, investors must realize that short-term pullbacks are likely, but the long-term outlook is strong.
As more countries adopt clearer crypto regulations, confidence is growing. With rising institutional interest, the next major milestone could arrive sooner than expected.
