The crypto market reached an all-time record on Friday, with a total valuation of over $4 trillion showing the sector has evolved from experimental toy to solid pillar of the global financial arena. This milestone, measured by CoinGecko, is the result of renewed confidence, tightened regulations and solid inflows of institutional capital.
Parliamentarians in Washington this week gave their approval to a bill to provide a formal framework for dollar-linked stablecoins. After approval in the House of Representatives, the bill is now up for signature by President Trump, who is expected to sign soon. Also, two additional bills passed the House: one to introduce an overarching regulatory framework for digital currencies, and another to prohibit the issuance of a U.S. central bank digital-currency (CBDC).
We see a tipping point in this wave of legislation. "The 'Genius Act' will historically be seen as the law that finally embedded crypto into the basic financial framework," said Chris Perkins of CoinFund. Derren Nathan of Hargreaves Lansdown nonetheless cautions caution: "Although political attitudes have taken a sharp turn, legislators remain critical."
Bitcoin's price performance reflects the prevailing market optimism and the currency broke through the $120,000 mark this week and closed Friday around $118,000, a modest correction of 1.8 %. ROM analysts anticipated that Bitcoin could even hit the $150,000 mark before year-end if this momentum continues. Ethereum, the second largest crypto currency, recorded a plus of 4.5 % in the same period and has more than doubled its value this quarter, as my previous articles had predicted. Remember, this is not financial advice and I am not giving investment or investment advice.
Moreover, crypto's appeal has translated to traditional stock exchanges. Listed trading platforms such as Coinbase and Robinhood recorded new all-time highs on Friday, thanks in part to the switch from corporate treasuries that put Bitcoin on their balance sheets as a new store of value.
With these developments, it is clear that digital assets are settling more and more firmly into the portfolios of both professional investors and private users. The step from speculative experimentation to strategic asset allocation thus seems to have been definitively made.
