Bitcoin News Today: Crypto Market Cap Surges 40% to $4 Trillion on U.S. Legislation

The global cryptocurrency market has achieved a significant milestone, surpassing a total market capitalization of $4 trillion for the first time. This surge is driven by substantial gains in major cryptocurrencies such as Bitcoin, Ether, and XRP, as well as a rally in altcoins. The market's growth has been further fueled by new U.S. regulations and rising institutional investment, marking a pivotal week for the digital asset class.

The legislative momentum in the U.S. has played a crucial role in boosting investor confidence. The U.S. House of Representatives passed three key cryptocurrency-related bills just before the August recess. The first bill, the GENIUS Act, introduces initial regulations and consumer protections for stablecoins, which are cryptocurrencies pegged to stable assets like the U.S. dollar. This bill passed with bipartisan support and aims to balance innovation with safeguarding consumers in the evolving payments landscape. The second bill seeks to clarify how different types of digital assets are regulated, distinguishing commodities from securities. The third bill, which passed by a narrower margin, would prohibit the U.S. from issuing a central bank digital currency (CBDC), essentially banning government-backed digital cash. These legislative moves are part of a broader effort to establish the U.S. as a leader in the crypto industry.

The surge in the crypto market cap has placed cryptocurrencies just behind Nvidia, the world’s largest publicly listed company, which recently surpassed the same valuation. Bitcoin regained its footing above $120,000, experiencing modest daily gains. Ether surged 8%, topping $3,600 for the first time since January, marking a 40% increase over the last two weeks. Meanwhile, XRP experienced a dramatic spike of nearly 20%, reaching a year-to-date high of $3.64. The recent legislative momentum in the U.S. has boosted investor confidence, sparking fresh enthusiasm for digital assets across the board.

The total crypto market cap has surged past $4 trillion, driven by gains in Bitcoin, Ether, and XRP. The U.S. House passed three key crypto bills, boosting investor confidence and fueling the market rally. The surge follows the U.S. House of Representatives passing three significant crypto-related bills just before the August recess. The key bill heading to the President, the GENIUS Act, introduces initial regulations and consumer protections for stablecoins, cryptocurrencies pegged to stable assets like the U.S. dollar. It passed the House with bipartisan support and aims to balance innovation with safeguarding consumers in the evolving payments landscape. Another bill, which passed by a narrower margin, seeks to clarify how different types of digital assets are regulated, distinguishing commodities, overseen by the Commodity Futures Trading Commission, from securities, regulated by the Securities and Exchange Commission. The legislation now moves to the Senate for further consideration. A third bill, passed narrowly, would prohibit the U.S. from issuing a central bank digital currency (CBDC), essentially banning government-backed digital cash. This bill also awaits Senate review.

This historic rise in cryptocurrency market cap reflects growing institutional confidence and legislative actions, sparking global interest. The cryptocurrency market has surged, reaching a total market cap of $4 trillion. Institutional inflows, primarily through ETF activity, have significantly contributed. Key players include Bitcoin and Ethereum, collectively holding 65% of market value. Bitcoin has topped $123,000, and Ethereum exceeds $3,900, buoyed by new ETF launches. Lawmakers focus on proposed crypto-friendly bills, impacting sentiment. BlackRock's ETF expansion enhances institutional market roles. This surge in total crypto market capitalization has effectively placed it above the GDP of the UK, signifying its stature among the world's largest financial systems.

Financial markets responded dynamically, with a 43% surge in 24-hour trading volume. The cryptocurrency value now exceeds the UK's GDP, indicating its integration into global financial systems. Ethereum's influence grows as DeFi protocols and Layer 2 projects evolve, boosting altcoin activity. Market trends suggest blockchain's increasing role in financial ecosystems. Historical data shows similar growth patterns during previous bull cycles. Analysts anticipate continued ETF-driven demand and regulatory influences shaping the market.