Crypto Market Capitalization Reaches $4 Trillion Amid U.S. Stablecoin Bill Passage

The total market capitalization of cryptoassets has surpassed $4 trillion for the first time, fueled by a surge in altcoins and growing momentum from US legislative efforts to regulate the industry. The milestone follows the passage of the first-ever US stablecoin bill, which aims to establish clear guidelines for the development and use of stablecoins.

The total market capitalization of all cryptocurrencies has surpassed $4 trillion for the first time, marking a significant milestone in the industry's growth. This achievement is driven by a surge in altcoins and growing momentum from U.S. legislative efforts aimed at regulating the industry. The milestone follows the passage of the first-ever U.S. stablecoin bill, which aims to establish clear guidelines for the development and use of stablecoins [1].

The market capitalization of Bitcoin (BTC) and Ethereum (ETH) accounts for over 70% of the total market value. Bitcoin's market cap swelled to $2.4 trillion, while Ethereum's reached $440 billion. This surge is attributed to surging investor demand and a string of regulatory victories in the U.S. [1]. The U.S. Congress passed the GENIUS Act and the CLARITY Act, which create the country's first federal framework for stablecoins and offer a legal structure for broader crypto assets, respectively. Both bills now await President Trump's signature [1].

The passage of these bills has driven institutional inflows into the crypto market. Bitcoin ETFs, for instance, pulled in $522.6 million on Thursday alone, the second consecutive week topping $2 billion. BlackRock's IBIT captured $497.3 million of these flows [1]. Charmaine Tam, head of OTC sales and trading at Hex Trust, expects this momentum to continue as other countries adopt similar regulatory frameworks, leading to even more global adoption and institutional capital deployment [1].

The surge in Bitcoin and Ethereum prices has led to a drop in Bitcoin's market dominance, signaling the start of "altcoin season." Altcoin market capitalization has been rising, with some analysts predicting a significant rally in the coming months. Jelle and Peter Brandt, prominent crypto traders, have identified a bullish continuation cup-and-handle setup on the TOTAL3/USD weekly chart, suggesting that the total altcoin market cap could reach $2.78 trillion [3].

The altcoin market's performance is bolstered by Ethereum's 24% price increase over the last seven days, indicating a capital rotation from Bitcoin. Cosmos' ATOM token, for example, rose by 3% in 24 hours, fueled by this altcoin market momentum [4]. The shift in focus from Ethereum Virtual Machine (EVM) platform development to blockchain interoperability has strengthened Cosmos' position as a standalone layer-1 blockchain, boosting investor confidence.

Traders are cautious about Bitcoin's climb to $120,336, with some expecting a near-term pullback or consolidation. QCP Capital analysts note that Bitcoin took a brief pause after surging past the $120k mark, triggering profit-taking flows that began to cap the momentum. A pullback toward $110k may provide a more stable foundation for the current rally to consolidate [1].

In conclusion, the crypto market's $4 trillion milestone underscores its rise as a mainstream asset class. The passage of U.S. stablecoin legislation and the subsequent institutional inflows have driven this growth. The start of altcoin season, fueled by a shift in investor sentiment and regulatory clarity, is likely to continue shaping the market's dynamics in the coming months.

References:
[1] https://decrypt.co/330769/crypto-market-cap-tops-4-trillion-as-bitcoin-ethereum-drive-institutional-inflows
[2] https://bloomingbit.io/en/feed/news/93121
[3] https://cointelegraph.com/news/three-charts-scream-altcoin-season-bitcoin-dominance-drops-8-week-lows
[4] https://www.coindesk.com/markets/2025/07/17/atom-surges-3-amid-volatile-session-as-altcoins-pick-up-steam