According to CoinGecko, the global cryptocurrency market capitalization surged past $4 trillion on Friday, marking a significant milestone in the asset class's evolution from niche to mainstream in the financial ecosystem. Experts say this growth is due to new regulations in the US coming into play, more optimistic traders, and higher investment from institutions.
In a key regulatory shift, the American Congress has already approved a bill to oversee stablecoins, which will now be sent to President Donald Trump for final resolution. Moreover, the House of Representatives advanced two major crypto-related bills to the Senate. The first establishes a comprehensive legal framework for digital assets, while the second could prevent the Federal Reserve from issuing a central bank digital currency (CBDC).
Derren Nathan from Hargreaves Lansdown believes these steps signal broader institutional acceptance of cryptocurrencies. However, regulators remain cautious, particularly regarding the risks associated with tokens. The market’s $4 trillion valuation demonstrates how far digital assets have come, driven in part by widespread adoption among retail investors.