Crypto Sector Hits $4 Trillion Milestone Amid Regulatory Breakthroughs and Institutional Momentum
The global cryptocurrency market has officially breached the $4 trillion valuation mark, marking a pivotal moment in its evolution from a fringe speculation zone to a mainstream financial asset class. This milestone comes amid rising institutional flows, growing regulatory clarity, and a surge in market optimism.
U.S. House Passes Stablecoin Bill, Eyes Broader Crypto Regulation
Fueling this momentum, the U.S. House of Representatives on Thursday passed a bill that establishes a regulatory framework for stablecoins — digital assets pegged to the U.S. dollar. The bill now heads to President Donald Trump, who is widely expected to sign it into law.
“The arrival of the Trump legislation signaled an about-turn in attitudes towards the crypto industry, but legislators are still exercising some caution,” said Derren Nathan, Head of Equity Research at Hargreaves Lansdown.
Two additional crypto-related bills were also passed by the House. One seeks to create comprehensive crypto regulation, while the other proposes a ban on the issuance of a U.S. central bank digital currency (CBDC). These measures now await Senate consideration.
Stablecoins and Institutional Adoption Driving Growth
Stablecoins, which maintain a 1:1 peg with fiat currencies such as the U.S. dollar, have become increasingly central to crypto trading, enabling instant payments and seamless token conversions. Their adoption has accelerated significantly over the past year, supported by both retail and institutional users. “The Genius Act will go down in history as a law that served as a foundational step in the mainstreaming of crypto as an asset class,” said Chris Perkins, President of CoinFund.
In tandem, major public corporations are adding bitcoin to their balance sheets as a store of value, further validating the asset’s position in the global financial ecosystem.
Bitcoin Hits $120K, Market Poised for More Gains
Earlier this week, bitcoin (BTC) hit an all-time high, crossing the $120,000 threshold, though it has since retreated slightly by 1.8%, leaving its current market capitalisation just below peak levels. Leading brokerage Bernstein forecasts BTC could rise to $200,000 by the end of 2025, driven by ETF inflows and corporate adoption.
Meanwhile, Ethereum (ETH), the second-largest cryptocurrency, was up 4.5% on the day and has more than doubled in the past three months, signalling growing interest in smart contract platforms and DeFi.
Crypto-Linked Stocks See Record Gains
The ongoing crypto rally is also benefiting publicly traded companies:
- Coinbase (COIN) shares rose by 1%, reaching new all-time highs.
- Robinhood (HOOD), which facilitates crypto trading on its platform, jumped 3%.
- Ether-related equities saw broad upward momentum as institutional capital moved into ETH-focused products.
Key Takeaways
- Crypto market cap crosses $4 trillion, a new all-time high.
- U.S. passes stablecoin legislation, with two more crypto bills heading to the Senate.
- Bitcoin reaches $120,000; ETH surges and doubles in three months.
- Corporate adoption and ETFs fuel institutional interest.
- Crypto stocks like Coinbase and Robinhood hit all-time highs.
