Crypto market surpasses $4 trillion milestone amid US regulatory breakthrough

The global cryptocurrency market capitalisation briefly topped $4 trillion on July 18 for the first time, marking a historic milestone in the asset class’s journey from speculative fringe to a central pillar of global finance. The surge comes on the back of a legislative breakthrough in the United States, rising institutional flows, and renewed confidence in digital assets across both retail and corporate sectors. According to data from CoinGecko, the crypto market hit a peak valuation of $4.01 trillion before paring gains to $3.92 trillion, as Bitcoin, the world’s largest cryptocurrency, retreated 1.5 per cent from a record high of $123,205 earlier in the week to $117,665. Ethereum (ETH), the second-largest token, rose 6.4 per cent to $3,647, continuing a sharp rally that has seen it more than double in the past three months.

Trump-backed bills reshape crypto landscape

The rally followed the US House of Representatives’ passage of the GENIUS Act, the first federal legislation governing stablecoins, which are cryptocurrencies pegged to the US dollar and widely used for on-chain payments and trading. President Donald Trump signed the bill into law later on July 18.

Lawmakers also passed two additional bills—the CLARITY Act, which provides a legal framework for broader crypto assets, and another bill prohibiting the creation of a US central bank digital currency (CBDC). Industry experts say the legislation represents a turning point in Washington’s stance on crypto.

Altcoins, ETFs, and corporates drive momentum

While Bitcoin remains the dominant force, accounting for roughly 60 per cent of market cap, the latest leg of the rally has been powered by altcoins like Ether, Uniswap, and Solana, which surged 6.4 per cent, 24 per cent and 6.5 per cent, respectively, on July 18. Analysts suggest the market is entering an “altcoin season” as investors rotate into riskier, high-growth tokens.

This altcoin momentum has been further buoyed by the rise of crypto treasury companies, which mimic MicroStrategy’s model of using equity and debt to build token portfolios. MEI Pharma, for example, doubled its stock price after announcing a $100 million Litecoin treasury investment.

On the institutional side, spot crypto ETFs continue to see robust demand. Bitcoin ETFs drew $5.5 billion in inflows so far this month, while Ether ETFs attracted $2.9 billion, signalling growing long-term confidence.

Consolidation ahead? Traders eye $110K support

Despite the bullish sentiment, analysts are beginning to watch for consolidation. QCP Capital noted that Bitcoin may retest support near $110,000, calling it “a more stable foundation” for the next leg of the rally. On Myriad, a blockchain-based prediction platform, over 90 per cent of users polled do not expect Bitcoin to close above $122,000 by week’s end.

Still, the market’s upward momentum shows few signs of slowing. Forecasts from Bernstein suggest Bitcoin could hit $200,000 by year-end if ETF flows and regulatory clarity continue at this pace. As regulatory frameworks begin to take shape in the US and institutional adoption deepens, digital assets appear to be entering a new era of legitimacy.