Crypto Market Hits $4 Trillion as Trump Signs Genius Act

Cryptocurrency market hits record $4 trillion valuation as Bitcoin dominates and institutional investors drive mainstream adoption

Key Takeaways

• Cryptocurrency market exceeds $4 trillion for first time with Bitcoin accounting for $2.35 trillion or 59.56% of total market capitalization, driven by institutional adoption and regulatory clarity.
• President Trump signs Genius Act into law after House advances three crypto bills, including stablecoin regulation and plans to allow Americans to hold crypto in 401(k) retirement plans.
• Coinbase shares hit all-time high at $444 up 2.2% daily and 50% year-to-date, while Circle surges 680% since June IPO debut as crypto-related equities rally.

Introduction

The cryptocurrency market reaches a historic milestone, surpassing $4 trillion in total market capitalization for the first time. This achievement comes as traditional stock markets remain largely flat, with the S&P 500 showing minimal movement despite crypto-related equities experiencing significant gains.

The surge follows Congressional passage of landmark digital asset legislation and President Trump’s signing of the Genius Act into law. Bitcoin dominance continues to drive market performance, representing nearly 60% of the total cryptocurrency market value.

Key Developments

According to Fortune, the total market capitalization of all cryptocurrencies surpassed $4 trillion on July 18, 2025, before slightly retracting. Bitcoin’s price briefly exceeded $120,000, contributing $2.35 trillion to the overall market cap.

The House advanced three crypto bills this week, sending two to the Senate while the third regulating stablecoins received Senate approval. President Trump signed the Genius Act into law Friday afternoon, remarking “They named it after me” during the signing ceremony.

The legislation includes provisions allowing Americans to hold cryptocurrency directly in their 401(k) retirement plans. Stablecoins maintain robust liquidity with a market cap of $266 billion, supporting on-chain trading activities and providing market stability.

Market Impact

Traditional equity markets show contrasting performance compared to crypto-related stocks. The S&P 500 ended flat despite achieving a weekly gain of nearly 0.7%, while the Nasdaq rose 0.4% and the Dow Jones decreased 0.3%.

Coinbase shares reached an all-time high of $444, rising 2.2% for the day and 50% year-to-date. Robinhood peaked near $113 with a 4% daily increase, while Circle trades at $242 in pre-market sessions.

Circle has surged over 680% since its June IPO debut at $31, making it one of the most explosive post-IPO performances in recent history. The stock remains below its near-$300 record set during its IPO week.

Strategic Insights

The crypto market’s milestone reflects broader institutional adoption and regulatory clarity. In the US, 40% of adults now own cryptocurrency, up from 15% in 2021, with trading volume expected to surpass $2 trillion in 2025.

Coinbase positions itself as the leading US-based crypto exchange despite mixed earnings results. Q1 2025 revenue reached $2.03 billion, up 24% year-over-year, though net income dropped to $66 million from $1.2 billion previously.

Strategy’s aggressive Bitcoin accumulation strategy has inflated its market cap to nearly $127 billion from $25 billion a year ago. The company trades at $452 in pre-market sessions, below its all-time high of $502 set after Trump’s election victory.

Expert Opinions and Data

Analysts from Bernstein called Coinbase the “most misunderstood” name in crypto, setting a $510 price target and citing its dominance in ETF custody and institutional flows. Price forecasts for 2025 range from $275 to over $400.

Bernstein analysts have called Circle a “must-hold,” citing its lead as the first publicly traded stablecoin issuer and early positioning to benefit from regulatory clarity. Circle pursues a national trust bank charter for direct US financial system access.

Veteran short-seller Jim Chanos warns of growing risks in the Bitcoin treasury market. He stated, “We are seeing SPAC-like 2021 numbers in the Bitcoin treasury market right now,” comparing current trends to the SPAC craze and cautioning about “me-too” firms issuing equity to chase crypto returns.

White House spokesperson Kush Desai declined to comment on reports that Trump advocates for minimum 15-20% tariffs in ongoing EU trade discussions. These tariff-related developments potentially impact broader market sentiment.

Conclusion

The cryptocurrency market’s rise above $4 trillion validates the sector’s resilience and long-term potential, driving significant investor interest in crypto-related equities. Regulatory developments under the Trump administration accelerate institutional adoption and mainstream integration.

The achievement underscores cryptocurrencies’ growing importance in the global economy and their potential to transform traditional financial systems. As regulatory frameworks evolve and institutional support increases, the digital asset universe positions itself for continued expansion.