The collective valuation of crypto-assets pushed past the $4 trillion mark for the first time this week, a development primarily influenced by a rally in various alternative digital currencies and legislative momentum emanating from the US. Data from CoinGecko indicated the total crypto market capitalization reached approximately $4.003 trillion on Thursday. Bitcoin, the leading cryptocurrency, currently accounts for nearly 60% of this total market value.
Market participants are increasing their positions in options contracts. Fadi Aboualfa, head of research at Copper, commented on Bitcoin’s trajectory, stating that its ascent to $150,000 appears “increasingly inevitable.” Aboualfa further suggested that if current capital inflows persist, even during the typically quieter summer months, Bitcoin could reach $140,000 by September and potentially advance towards $150,000 in early October. Data from Deribit indicates elevated open interest in Bitcoin options at the $130,000 strike price for the August 1 expiration.
Bitcoin achieved a record valuation of $123,205 on Monday. On Friday, the cryptocurrency experienced a slight decline, trading around $117,665. While Bitcoin previously led much of the sector’s growth, smaller, more volatile digital tokens, broadly termed altcoins, have recently demonstrated stronger performance. Ether, for example, recorded an approximate 20% gain this week. Other notable altcoin movements on Friday included Uniswap surging by as much as 24% and Solana gaining 6.5% at one point. XRP saw an approximate 20% increase, reaching a year-to-date high of $3.64, while Dogecoin rose 12.5% in a single day.
A contributing factor to the recent altcoin surge has been the emergence of “crypto treasury companies.” These newly established public entities, drawing inspiration from Michael Saylor’s MicroStrategy, have been raising capital through equity and debt issuance specifically to acquire diverse digital tokens as corporate investments. In an example of this trend, MEI Pharma Inc.’s shares doubled at one juncture on Friday after the pharmaceutical firm announced a $100 million private investment in public equity (PIPE) transaction to establish a Litecoin treasury.
Significant legislative activity in the US has coincided with the market’s expansion. The US House of Representatives recently passed three key bills concerning digital assets. One of these, the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), represents the first-ever federal legislation for stablecoins. Backed by Republicans and publicly supported by President Donald Trump, this bill introduces federal or state regulatory oversight for stablecoins pegged to the US dollar. The stablecoin market, currently valued at $265 billion, is projected by Citigroup analysts to expand to $3.7 trillion by 2030. The GENIUS Act is anticipated to be signed into law by President Trump later today at the White House.
Additionally, the House on Thursday approved a broader crypto market structure bill, known as the CLARITY Act, which now awaits consideration by the Senate. This proposed legislation aims to provide a clearer regulatory framework for digital assets, including potentially reallocating some oversight responsibilities from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). Kara Calvert, a policy official at Coinbase, stated that this bill has been a primary legislative objective for the exchange. The House also passed the Anti-CBDC Act, which would prevent the Federal Reserve from issuing a central bank digital currency.