Bitcoin News Today: Cryptocurrency Market Hits $4 Trillion on Institutional Inflows

The total market capitalization of all cryptocurrencies reached an unprecedented $4 trillion on Friday morning, driven by significant institutional inflows into Bitcoin and Ethereum. Bitcoin's market cap surged to $2.4 trillion, while Ethereum's market cap reached $440 billion. This milestone underscores the growing acceptance of cryptocurrencies as a mainstream asset class, with Bitcoin often referred to as "digital gold" due to its role in wealth creation.

Bitcoin's price rose by 1.4% in 24 hours to reach $120,336, while Ethereum surged by 6.4% to $3,647. However, both assets experienced a slight retreat shortly after, with Bitcoin trading at $118,673 and Ethereum at $3,610. The surge in cryptocurrency values follows the bipartisan passage of the GENIUS Act and the CLARITY Act, which provide regulatory frameworks for stablecoins and broader crypto assets, respectively. These bills are expected to be signed into law by the President.

On the same day as these legislative victories, institutional investors poured $522.6 million into spot Bitcoin ETFs, extending a two-week streak of heavy inflows totaling over $4 billion. This marks the second consecutive week where inflows exceeded $2 billion. The momentum is expected to continue as other countries are likely to follow the U.S. in setting clear crypto rules, leading to even more global adoption and institutional capital deployment.

Ethereum's market dominance increased from 9% to 11%, while Bitcoin's share dropped by 4 percentage points. This shift signals the start of an "altcoin season," as investors rotate into higher-risk assets. The surge in Ethereum's value, backed by significant ETF inflows, indicates systematic adoption and highlights Ethereum's role in hosting over half of the global stablecoin supply. This validates the idea that programmable money is becoming a crucial component in the future of finance.

Despite Bitcoin's climb to $120,336, analysts are watching for consolidation signals. The asset took a brief pause after surging past the $120,000 mark, triggering profit-taking flows that began to cap the momentum. A pullback toward $110,000, which marked the previous cycle high, may provide a more stable foundation for the current rally to consolidate. Traders are positioning for a near-term pullback or consolidation, with an overwhelming majority voting against Bitcoin closing above $122,000 by the end of Friday.