The global cryptocurrency market briefly surpassed the $4 trillion mark on July 18, reaching a historic milestone that underscores its transformation from a speculative niche to a cornerstone of global finance. The rally was driven by a major legislative breakthrough in the United States, increased institutional investment, and growing confidence in digital assets among both retail and corporate investors. Data from CoinGecko shows the market peaked at $4.01 trillion before easing to $3.92 trillion, as Bitcoin — the world’s largest cryptocurrency — dipped 1.5% from its all-time high of $123,205 earlier in the week to $117,665. Meanwhile, Ethereum (ETH), the second-largest cryptocurrency, climbed 6.4% to $3,647, extending a sharp rally that has more than doubled its value over the past three months.
Trump-endorsed legislation reshapes the crypto landscape
The rally was sparked by the U.S. House of Representatives’ approval of the GENIUS Act, the first federal law regulating stablecoins—cryptocurrencies tied to the U.S. dollar and commonly used for on-chain transactions and trading. President Donald Trump signed the bill into law later on July 18.
Lawmakers also passed two other significant measures: the CLARITY Act, which establishes a legal framework for a wider range of crypto assets, and a separate bill that bans the creation of a U.S. central bank digital currency (CBDC).
Altcoins, ETFs, and corporates drive momentum
While Bitcoin still dominates the market with around 60% of total capitalization, the latest phase of the rally has been driven by altcoins such as Ether, Uniswap, and Solana, which jumped 6.4%, 24%, and 6.5%, respectively, on July 18. Analysts say the market is entering an “altcoin season,” as investors shift toward riskier, high-growth tokens.
This altcoin momentum has also been fueled by the emergence of crypto treasury firms adopting a strategy similar to MicroStrategy—using equity and debt to accumulate token holdings. One notable example is MEI Pharma, which saw its stock price double after announcing a $100 million investment in Litecoin.
On the institutional front, demand for spot crypto ETFs remains strong. Bitcoin ETFs have attracted $5.5 billion in inflows so far this month, while Ether ETFs have pulled in $2.9 billion, reflecting growing confidence in the long-term viability of digital assets.
Consolidation in sight? Traders watch $110K as key Bitcoin support level
Despite the prevailing bullish sentiment, some analysts are anticipating a period of consolidation. QCP Capital highlighted the possibility of Bitcoin retesting support around $110,000, describing it as “a more stable foundation” for the next phase of the rally. On Myriad, a blockchain-based prediction platform, more than 90% of users polled do not expect Bitcoin to close above $122,000 by the end of the week.
Nevertheless, upward momentum remains strong. Analysts at Bernstein project that Bitcoin could reach $200,000 by year-end if ETF inflows and regulatory progress maintain their current trajectory. With regulatory frameworks solidifying in the U.S. and institutional interest accelerating, digital assets appear to be entering a new phase of mainstream legitimacy.
