S&P 500 Hits All-Time High Driven by 7% Yearly Gain and Crypto Surge

The S&P 500 index reached an unprecedented high on July 18, 2025, driven primarily by the surge in crypto-related stocks. This milestone was achieved following the enactment of the “GENIUS Act” into federal law, which provided much-needed regulatory clarity for the crypto industry. The legislation was signed into law by the Trump administration, marking a significant shift in the regulatory landscape for cryptocurrencies.

The GENIUS Act has bolstered investor confidence, leading to a bullish rally in the crypto market. This newfound regulatory certainty has stimulated both institutional and retail investment in crypto-equivalent stocks and ETFs. Major crypto-focused firms have significantly contributed to the S&P 500's gains, reflecting the growing integration of cryptocurrencies into traditional financial markets.

According to Noelle Acheson, an economist and author, the GENIUS Act's status as federal legislation makes it difficult for future administrations to reverse, especially as stablecoins become more integrated into the global financial system. This regulatory framework is expected to foster continued institutional involvement in cryptocurrencies, potentially leading to substantial investment and public interest in blockchain technologies.

The broader crypto market also experienced significant gains, with the overall market cap reaching historic levels. Bitcoin, the leading cryptocurrency, saw its price fall below $118,000 by 2:45 p.m. ET following the major milestone, as the overall market took a breather after achieving all-time highs. This price movement highlights the volatility and speculative nature of the crypto market, even as it continues to attract substantial investment.

The rally in the crypto space was further fueled by the passage of the GENIUS Act, which pushed the market cap to over $4 trillion. XRP, another prominent cryptocurrency, also hit an all-time high amid the exuberance surrounding the legislative developments. These events underscore the impact of regulatory changes and market sentiment on the performance of crypto assets.

Investors' enthusiasm for the state of the economy and its resilience in the face of challenges has also contributed to the S&P 500's gains. The index is up 7% year to date, reflecting a positive outlook on economic conditions and corporate earnings. This optimism is further supported by the strong performance of the S&P 500 ETFs, which are at record highs, indicating robust investor confidence in the market.

The inclusion of crypto-related companies in major indices like the S&P 500 is expected to have a positive impact on their stock prices. Historical data suggests that companies often experience a positive bump in their stock price both leading up to and immediately following S&P 500 inclusion. This trend is likely to continue as more companies integrate cryptocurrencies into their business models and investment portfolios.

In summary, the S&P 500's achievement of an all-time high is a testament to the growing influence of crypto stocks in the broader market. The performance of companies with significant crypto holdings, coupled with the overall rally in the crypto space, has driven the index to new heights. As the market continues to evolve, the integration of cryptocurrencies is expected to play an increasingly important role in shaping the future of the financial landscape.