Crypto Market Milestone & US Stablecoin Legislation Drive Growth in 2025

The third week of July 2025 marks a new milestone for the cryptocurrency market, as its total market capitalization surpasses $4 trillion for the first time this year. This surge occurs after Bitcoin and XRP hit new all-time highs, with Ethereum rising over 20% due to strong institutional buying pressure. This week also features a historic development: the United States officially enacts the GENIUS Act, legalizing stablecoins and opening the door for this segment, which is widely predicted to reach a trillion-dollar scale. During the past week, the total crypto market cap increased by approximately $177 billion, from about $3.731 trillion to roughly $3.908 trillion. Bitcoin remains stable around $118,000. It initiated a bullish rally last week by breaking the resistance at $110,000, quickly reaching a new all-time high of $112,000. This momentum extended into the end of the week, pushing Bitcoin close to $119,000, a new peak. A significant highlight occurred on Monday, July 14, when buyers drove the price above $123,000, setting a new all-time high and marking an increase of over $15,000 in five days. However, a retracement followed, with Bitcoin dropping below $116,000 over the next few days. The price held this level and rebounded somewhat by the week's end. Despite testing levels around $120,000 and $121,000, it failed to break higher and has since stabilized around $118,000. Notable news includes the signing of the GENIUS Act by President Donald Trump on July 19, 2025, establishing a clear regulatory framework for digital assets pegged to USD, requiring 100% equity, regular audits, AML compliance, and oversight by Fed and OCC. This legislation is expected to legitimize stablecoins in daily finance, fostering financial innovation and accelerating on-chain economic growth. Additionally, Financial Times reports Trump plans to allow U.S. pension funds to allocate capital into assets like gold, private equity, and cryptocurrencies. If enacted, this policy shift would represent a major change, as federal and state pension funds, which managed a total of $8.7 trillion as of March 2025, historically limited investments to bonds and large-cap stocks. Major institutions continue accumulating Bitcoin and Ethereum: - Strategy: $472.5M - Metaplanet: $96M - SharpLink: $515M - Sequans: $79M - BitMine & BTCS: $337M - Bit Digital: $71M Big companies are launching new funds to buy cryptocurrencies: - Hyperliquid Strategies: $888M - Cantor Fitzgerald: $3.2B - Windtree: $200M - Bit Origin: $500M Market sentiment indicators show Bitcoin’s Fear and Greed Index at 71, indicating greed, down slightly from the week’s start (74). The total index excluding Bitcoin is valued at $1,308 billion. Market distribution shows Bitcoin’s dominance at 63.6%, with Ethereum at 9.7%.