Crypto Market Surges 100% to $4 Trillion on US Policy Shift

The global cryptocurrency market achieved a notable milestone on Friday, with the total market value of all cryptocurrencies exceeding $4 trillion. This surge was propelled by a rally in altcoins and the momentum generated from the passage of three significant crypto bills by US lawmakers. The Genius Act, one of these bills, is poised to be signed into law, marking a substantial victory for the industry as it gains broader acceptance and regulatory clarity.

The rally was also driven by the performance of individual cryptocurrencies. XRP, for example, reached a new record high of $3.66, becoming the third-largest cryptocurrency by market capitalization. This surge in XRP's value was part of a broader bullish trend in the crypto market, which saw Bitcoin break another all-time high at $123,000 earlier in the week. Market analysts had predicted that altcoins like Ethereum and Solana would follow suit, contributing to the overall market momentum.

The passage of the crypto bills in the US is a pivotal development for the industry. The legislation provides a regulatory framework that could facilitate greater institutional investment and mainstream adoption. The Genius Act, in particular, is expected to have a profound impact on the industry by offering clear guidelines for the use and regulation of cryptocurrencies. This regulatory clarity is essential for the industry's growth, as it reduces uncertainty and encourages more investors to enter the market.

The rally in the crypto market also aligned with broader trends in the financial markets. Risk-on assets, such as tech stocks, were performing strongly, driving the S&P 500 index to record highs. This trend was fueled by investor optimism, which was bolstered by slightly better-than-expected inflation figures and political developments. The Federal Reserve's stance on interest rates also played a role, with pressure from the Trump administration to leave office due to his reluctance to cut interest rates.

The surge in the crypto market underscores the industry's resilience and potential for growth. The passage of the crypto bills in the US is a significant development that could pave the way for greater institutional investment and mainstream adoption. The rally in the crypto market also coincided with broader trends in the financial markets, highlighting the industry's potential to become a major player in the global economy.