The cryptocurrency market reached a significant milestone, achieving a market value of $4 trillion. The main driver of this increase was the passage of the first federal stablecoin law.
Significance of the New Stablecoin Law
The U.S. Congress passed legislation introducing federal oversight over the $265 billion stablecoin market. Signed by Donald Trump, the law legitimizes a market that Citigroup analysts project could grow to $3.7 trillion by 2030. Enhanced regulation creates new opportunities for market participants and integrates cryptocurrencies into a broader financial context.
Altcoin Rally and Its Causes
Alternative cryptocurrencies have been the main drivers of the recent upswing, while bitcoin has recorded new highs. Over the past week, Ethereum surged by 20%, Uniswap by 24%, and Solana by 6.5%. Interest in altcoins has also been fueled by the emergence of companies investing in cryptocurrency, similar to MicroStrategy's approach of using equity to buy digital tokens.
Ongoing Demand from Institutional Investors
Institutional investors continue to pour money into U.S.-listed cryptocurrency exchange-traded funds. In July, bitcoin funds attracted $5.5 billion, while Ethereum ETFs brought in $2.9 billion. Derivative market data indicates bullish sentiment, with elevated open interest in bitcoin options suggesting further price increases. Experts forecast that if current investment flows continue, bitcoin could reach $140,000 by September.
The passing of the stablecoin law marks an important step toward greater clarity in cryptocurrency regulation, which could foster further market growth and increased institutional investment.
