The market capitalization for all the cryptocurrencies in the world has surpassed $4 trillion for the first time, according to data from CoinGecko.
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The milestone has been reached as Bitcoin (BTC), the largest digital asset by market cap, continues to rally alongside smaller cryptocurrencies such as Ethereum (ETH), XRP (XRP) and Solana (SOL). A leading index that tracks the price movements of major cryptocurrencies has risen 35% in the past month.
Ethereum is currently trading above $3,500, its highest level since the start of the year, while Bitcoin’s price is back near $120,000. Crypto’s market cap surpassed $3 trillion for the first time in November 2021, marking the peak of a pandemic-fueled rally driven by loose monetary policy and speculative mania.
Favorable Environment
Now, crypto has hit the $4 trillion milestone as investors turn bullish on digital assets amid a favorable political and regulatory environment under U.S. President Donald Trump. Trump’s re-election has sparked investors’ risk appetite as people bet on deregulatory crypto policies in Washington, D.C.
Investor spirits are especially high after the recent passage of the GENIUS Act cryptocurrency legislation in Congress. Some analysts say that the top for BTC is nowhere near, and a growing number of options traders are betting that Bitcoin’s price will exceed $130,000 by Sept. 1 of this year.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 38.70% in the last 12 weeks.
