The global cryptocurrency market achieved an unprecedented milestone on July 17-18, 2025, with its total market capitalization surpassing $4 trillion for the first time ever. This significant surge, occurring primarily on Thursday, July 17 and continuing into Friday, July 18, positioned the digital asset market to be nearly as large as Nvidia, which currently holds a market capitalization of $4.2 trillion. The market capitalization stood at $4.003 trillion according to CoinGecko, with $260.2 billion traded in 24 hours.

A primary catalyst for this rally was the U.S. House of Representatives' passage of three major cryptocurrency bills on Thursday, July 17. The Guidance and Establishing Innovation for US Stablecoins (GENIUS) Act, passed with a vote of 307-122, aims to create the U.S.'s first federal framework for stablecoins and foundational regulations with consumer protection. The Digital Asset Market Clarity (CLARITY) Act, passed 294-134, seeks to establish clearer distinctions between digital commodities and securities, defining jurisdictional roles for the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Additionally, an Anti-CBDC bill, banning a U.S. government-backed digital dollar, was narrowly passed. All three bills are now headed to President Donald Trump, who is expected to sign them, marking a significant step in the administration's “crypto week” initiative to position the U.S. as a global leader in digital asset innovation.

The legislative momentum coincided with massive institutional capital deployment. Spot Bitcoin Exchange Traded Funds (ETFs) recorded substantial inflows, totaling $2.02 billion this week and $5.41 billion in July, marking four consecutive months of inflows. BlackRock's IBIT alone captured $497.3 million of Thursday's inflows. Ethereum (ETH) also saw a significant spike in institutional interest, with spot ETH ETFs recording $1.78 billion in inflows this week, their highest since launch, including $726 million in single-day ETF inflows. This influx fueled strong price performances across major cryptocurrencies. Bitcoin (BTC) surged, reclaiming and even surpassing the $120,000 level, reaching new all-time highs up to $123,218. Its market capitalization swelled to $2.4 trillion, maintaining around 60% market dominance. Ethereum (ETH) experienced an 8% daily gain, breaking above $3,600 and reaching highs up to $3,647, its highest level since January. ETH's market dominance jumped from 9% to 11%, signaling a potential “altcoin season” as investors rotate into higher-risk assets. Ripple (XRP) recorded impressive gains, surging between 12% and 20% to set new all-time highs, briefly crossing $3.60 and reaching up to $3.66. Other altcoins like Cardano (ADA) also participated in the rally, gaining 14.6%. U.S.-listed crypto stocks, including Coinbase (COIN) which climbed over 3% to $410, and Robinhood (HOOD) which rose 2% to $105, also saw significant climbs, setting new records.

Amidst the spot market rally, the derivatives market was active. Approximately 41,500 Bitcoin options contracts, with a notional value of around $5 billion, were set to expire on Friday, July 18. The put/call ratio for these contracts was 0.69, with a max pain point of $113,000, around $7,000 below current spot prices. Open interest (OI) for BTC options was highest at the $120,000 strike price, with more than $2.3 billion, and also significant at $130,000 and $140,000. Additionally, around 243,000 Ethereum contracts, valued at $750 million with a max pain point of $2,900 and a put/call ratio of 1.0, were also expiring, bringing the combined crypto options expiry notional value to around $5.7 billion. Despite the market surge, some analysts, like Greeks Live, maintained a cautious or even bearish short-term outlook on Wednesday before the surge, expecting consolidation, with QCP Capital suggesting a pullback toward $110,000 for a stable foundation. However, the overall market sentiment remained largely bullish, with Charmaine Tam, head of OTC sales and trading at Hex Trust, expecting momentum to continue as other countries follow the U.S. in setting clear crypto rules, leading to more global adoption and institutional capital deployment.

President Donald Trump's increasing engagement with the crypto industry has been a notable factor. Beyond signing the new crypto bills, he is reportedly preparing an executive order that would pave the way for 401(k) accounts to invest in cryptocurrencies. His financial disclosures in July 2025 revealed substantial earnings of $58 million in 2024 related to crypto activities, mainly through the sale of WLFI tokens. These earnings are projected to increase further by $390 million in 2025 through token sales and his meme coin, launched earlier this year. His family's publicly traded Trump Media & Technology Group also agreed to invest more than $2 billion in digital currencies like Bitcoin. Such direct exposure and pro-industry reforms have raised concerns about potential conflicts of interest among critics.

The current market surge echoes the 2021 bull run, which saw the market cap exceed $3 trillion before a subsequent downturn marked by macroeconomic tightening and high-profile collapses like Terra and FTX. This time, however, the momentum appears more structurally driven by regulatory clarity, consistent institutional adoption, and a broad rally across major digital assets. Analysts suggest that the crypto market could surpass future trillion-dollar valuations far faster than before, potentially in a matter of months rather than years, as capital rotates into altcoins and institutional inflows accelerate across spot ETFs and on-chain assets.