Crypto Market Surpasses $4 Trillion Mark
The overall value of cryptocurrencies has climbed past $4 trillion for the first time, a shift that follows significant new regulations for the industry.
This rise coincided with President Trump’s signing of new legislation on Friday, marking the first federal law aimed at regulating stablecoins, a type of cryptocurrency linked to tangible assets.
The newly enacted law comes after a tumultuous period in Congress, introducing federal and state oversight of stablecoins tied to the US dollar, which adds a layer of legitimacy to a marketplace that has often operated without strict regulation.
Citigroup analysts are predicting that by 2030, the stablecoin market could reach as much as $3.7 trillion.
“For those who haven’t invested before, it’s hard to tell if now is the right time to get in,” suggested Ken Mahoney, CEO of Mahoney Asset Management. “In fact, I might argue the opposite.”
“If you have made some profits, it’s usually wise to consider selling gradually.”
This record-setting market capitalization was largely driven by a surge in altcoins, or cryptocurrencies other than Bitcoin.
Ether has experienced a remarkable nearly 20% rise in just five days, trading around $3,500 as of 5:30 PM ET. Bitcoin reached an all-time high of $123,205 earlier this week, and was trading at about $117,000 at the same time.
On Friday, Uniswap gained 20% while Solana, known for its meme coins, saw a 5.6% increase.
Investors have shown a growing interest in cryptocurrency ETFs leading up to what some are calling “crypto week.” There’s a hope that Trump’s endorsement of the legislation might improve the reputation of cryptocurrencies as viable assets.
In July alone, the Bitcoin Fund has attracted $5.5 billion, while the Ether ETF brought in $2.9 billion.
“The Genius Act is a landmark law that’s crucial for integrating crypto into mainstream finance,” stated Coinfund President Chris Perkins.
However, Mahoney cautioned that, “things tend to ebb and flow. After the initial excitement dissipates, the market may very well cool off.”
Meanwhile, the House has passed two broader bills regarding cryptocurrency that are now awaiting Senate review.
The new regulations for digital assets aim to set up additional frameworks while the CBDC surveillance law is designed to inhibit the Federal Reserve from issuing a central bank digital currency.
After signing the Genius Act, Trump reflected on his previous address at last year’s Bitcoin Conference.
“We have vowed to reclaim America’s dominance and position ourselves as the worldwide center for crypto,” he remarked. “That’s exactly what we’ve done, and under my administration, we’ll go even further.”
The Senate Banking Committee indicates that the Genius Act will guide and establish national standards for US stablecoins, requiring monthly public updates on competitive standing and annual audits for issuers with over $50 billion in assets.
“As I said last year, the Genius Act provides a straightforward regulatory structure to unlock the vast potential of dollar-backed stablecoins,” Trump added. “This could very well be the biggest advancement in financial technology since the Internet’s inception.”
A recent analysis from crypto risk modeling firm Gauntlet estimates that Trump has made around $150 million from his $Trump memecoin from its launch in January to mid-June. Additionally, the so-called “unlock” of the Trump Memecoin this week is expected to boost the president’s wealth by an additional $100 million, according to research from the crypto analytics firm Messari.
