Bitcoin News Today: Crypto Market Capitalization Surges 28.2% in Q2 2025 Driven by Bitcoin and ETF Inflows

In the second quarter of 2025, the cryptocurrency market experienced a notable recovery, with the total market capitalization rising to $3.46 trillion. This resurgence was primarily driven by significant inflows into exchange-traded funds (ETFs) and a strong rally in Bitcoin prices. Following a substantial correction in the first quarter, the market saw a 28.2% increase in market capitalization on a quarter-on-quarter basis. This upswing was largely attributed to the optimism surrounding ETF products and the robust performance of Bitcoin, which peaked at $111.9K during the quarter.

Bitcoin's strong performance was a key driver of the broader market recovery. The cryptocurrency surged to $118,900 on July 16, 2025, marking a 2.3% increase for the day. Ethereum also saw a notable surge, rising by 9.77% on the same day. The market recovery was further bolstered by the performance of BlackRock's iShares Bitcoin ETF, which became one of the top revenue drivers among nearly 1,200 funds. This ETF, known as IBIT, surpassed 700,000 BTC in holdings, underscoring the growing institutional interest in cryptocurrencies. The inflows into ETFs and the positive sentiment around Bitcoin contributed to a broader market rally, with various altcoins also experiencing significant gains.

Despite the market's recovery, there were challenges. Global growth headwinds and geopolitical issues capped full-scale resurgence. However, supportive U.S. labor data and Fed rate-cut expectations aided sentiment. The strong performance of Bitcoin and the influx of capital into ETFs highlighted the resilience of the cryptocurrency market and its potential for future growth. As the market continues to evolve, the role of ETFs and institutional investors is likely to become even more pronounced, shaping the future trajectory of the crypto industry.

Looking at crypto exchange performance, Binance led with 35.4% of total trade volume, a slight dip from Q1, while OKX, Bitget, HTX, Gate, and Kucoin expanded their shares, with Gate gaining the most (+2.55%). In derivatives open interest, Binance also led at 23.8%, followed by increasing shares at HTX, Bitget, and OKX. Exchange tokens trailed BTC’s 31.6% Q2 gains: BNB rose 8.9%, OKB, BGB, and KCS saw minor upticks, but most others declined, reflecting slumping altcoin activity.

Despite bitcoin’s strong performance, volume concentration persists. With macro uncertainty still a backdrop, Q3 may see spot trading remain flat or dip further ($3–3.5 trillion projected), even as derivatives retain dominance. Exchange token performance is expected to diverge further, echoing capital flow patterns across assets.