The global crypto market has surged past the US $4 trillion mark for the first time, propelled by a strong rally in altcoins and vital US legislation.
On 18 July 2025, total crypto market capitalisation eclipsed $4 trillion, marking a watershed in digital asset growth. Bitcoin set a fresh high above $123,000, while Ether jumped roughly 20% this week. Other tokens like Solana and Uniswap also posted sharp gains.
ETF inflows have been a key driver: US-listed Bitcoin funds recorded $5.5 billion in July, with Ether ETFs adding $2.9 billion.
Legislative Push Fuels Investor Confidence
US lawmakers passed the Genius Act, the first federal stablecoin regulation, defining a framework where issuers must meet federal or state oversight, monthly reserve disclosures, and audited reports. President Donald Trump is expected to sign the bill, which analysts predict could legitimise the $265 billion stablecoin sector—potentially expanding to $3.7 trillion by 2030.
Thursday also saw passage of legislation on broader crypto market structure and a ban on unfettered exploration of a central bank digital currency. These moves together form what industry stakeholders have dubbed “Crypto Week”.
Altcoin Surge
Much of the rally stemmed from altcoins. Ether surged about 20%, Uniswap gained up to 24%, Solana was up 6.5%, and XRP even reached record highs above $3.66.
Altcoins had lagged behind Bitcoin’s rally until now, but fresh inflows into crypto treasuries and corporate crypto allocations—like a $100 million Litecoin purchase via MEI Pharma—have helped fuel renewed interest.
Institutional Architecture: ETFs & Treasuries
ETF inflows show institutional backing is growing. As mentioned, Bitcoin and Ether ETFs are drawing heavy capital. On-chain and options data suggest continued strong activity—particularly around large Bitcoin strikes like $130,000 in early August options.
Meanwhile, companies are funding crypto allocations via equity and debt issuance. MEI Pharma’s $100 million Litecoin treasury stands out, reflecting a growing trend of corporate crypto.
Is this a turning point or a bubble?
It’s clear that US regulation is no longer crypto’s opponent—it’s becoming its powerful ally. The Genius Act, alongside other market bills, removes uncertainty and allows stablecoins and ETFs to enter mainstream finance. The legislative push, combined with strong institutional inflows, paints a picture of a market evolving from fringe to foundational.
However, such rapid inflation in asset prices always brings risk of overheating. The sheer volume of capital entering altcoins and record speculative options strikes may suggest over-exuberance. As market participants flock in, any delay in passing Senate bills or signing could trigger sharp reversals. Even Trump’s anticipated executive order to include crypto in 401(k)s, while bold, may face resistance or unforeseen implementation hurdles.
In essence, this upswing signifies an important maturation of the market, but also underlines its still nascent and highly sensitive nature. Realisation of these initiatives, including ETF sustainability and treasury adoption, will determine whether the $4 trillion mark is a solid base or precarious peak.
