Bitcoin News Today: Crypto Market Surges 25% to $4 Trillion on U.S. Legislation

The cryptocurrency market has achieved a significant milestone, surpassing a $4 trillion valuation. This surge is driven by substantial legislative progress in the U.S., which has bolstered investor confidence and institutional participation. The recent passage of the GENIUS Act and the CLARITY Act has established the first federal framework for stablecoins and provided a legal structure for broader crypto assets. This legislative breakthrough has been a catalyst for the market, pushing the total crypto valuation beyond $4 trillion for the first time. Bitcoin (BTC) and Ethereum (ETH) remain dominant, accounting for over 70% of the market cap, with Bitcoin briefly surpassing $120,000 and Ethereum reaching highs above $3,600.

Investor enthusiasm is reflected in substantial inflows to Bitcoin ETFs and a notable shift towards altcoins. Institutional investors have demonstrated renewed confidence, injecting over $522 million into spot Bitcoin ETFs on the day of the House vote alone. This influx is part of a broader trend, with over $4 billion entering Bitcoin ETFs in the past two weeks. The sustained capital inflows are expected to maintain upward momentum in the short term, fostering a more mature and liquid market environment. The absence of a “Buy on Rumour, Sell on Facts” reaction suggests that the market is digesting these legislative wins as concrete progress rather than speculative hype.

Following the legislative milestone, Ethereum’s market dominance increased from 9% to 11%, while Bitcoin’s share declined by 4 percentage points, signaling a rotation towards altcoins. Analysts interpret this shift as the onset of “altcoin season,” where investors seek higher-risk, higher-reward opportunities beyond Bitcoin. Ethereum’s surge is supported by a remarkable $726 million in single-day ETF inflows, underscoring growing institutional interest. Ethereum’s critical role in hosting over half of the global stablecoin supply reinforces its position as the backbone of programmable finance and a key driver of future decentralized financial ecosystems.

Despite Bitcoin’s recent rally, analysts caution that a period of consolidation may follow. Profit-taking near the $120,000 mark could temper momentum, with a potential pullback to the $110,000 level providing a more stable foundation for sustained gains. Market sentiment on prediction platforms reflects this cautious stance, with a majority of users anticipating a near-term pullback rather than further immediate gains. This suggests traders are positioning for volatility and consolidation, which is typical following rapid price advances and significant market milestones.

The cryptocurrency market’s breakthrough past $4 trillion, fueled by landmark U.S. legislation and strong institutional inflows, marks a significant step toward mainstream adoption. While Bitcoin and Ethereum continue to lead, the growing prominence of altcoins signals diversification and maturation within the ecosystem. Investors and traders should remain attentive to potential consolidation phases, which are natural in a rapidly evolving market. Overall, the regulatory clarity and capital influx set a promising stage for continued growth and innovation in the crypto space.