The global crypto market capitalisation hit a historic milestone on July 18, 2025, surpassing $4 trillion for the first time, according to CoinGecko data cited by Reuters . This surge reflects the sector’s transformation from a speculative niche into an essential component of the global financial ecosystem.

Bitcoin initiated the rally earlier in the week, briefly topping $120,000 and touching a high near $123,000, buoyed by anticipation around U.S. regulatory developments. Simultaneously, the passage of key crypto legislation—including the upcoming GENIUS Act focused on stablecoin oversight—helped ignite renewed investor confidence .

1. Institutional Inflows
   Although retail investors continue to drive momentum, institutional participation is growing. Money is flowing into Bitcoin and Ether-focused ETFs, as well as crypto-linked equities and stablecoin-based products, creating diversified demand .

2. Regulatory Clarity
   Legislative progress under the “Crypto Week” in the U.S.—including frameworks for stablecoins and token classification—has instigated a shift in sentiment. The GENIUS Act and related rules offer clear guidelines, encouraging both institutional and mainstream adoption .

3. Altcoin Strength
   While Bitcoin leads, altcoins notably contributed to the market cap milestone. Ethereum, XRP, meme tokens, and DeFi assets all experienced upticks as investor appetite broadened .

• Crypto stocks jumped alongside the broader rally. Exchanges, mining firms, and asset managers all recorded gains—fuelled by Ethereum’s momentum and regulatory news in the U.S. .

• Bitcoin solidified its role as the market’s anchor, having established itself above $120K—a strong psychological threshold that reinforces investor confidence .

• Analyst optimism is rising: some forecasts now predict Bitcoin could reach $200,000 by the end of 2025, supported by evolving regulation and institutional inflows .

Breaking the $4 trillion threshold marks a pivotal moment: crypto is no longer fringe but a vital component of global finance. With institutional inflows, legislative clarity, and altcoin momentum all converging, the market is transitioning into a new growth phase. Watch closely as regulation and adoption scale further.