The global crypto market has hit a record $3 trillion in total value, buoyed by optimism over regulatory changes and significant gains in major tokens. This increase comes amid pro-crypto sentiment surrounding the recent election of Donald Trump, who, along with other pro-crypto lawmakers, could usher in friendlier US regulations for digital assets.
According to CoinGecko, the market peaked at nearly $3.2 trillion on November 14, surpassing the peaks of the pandemic-fueled speculative boom of 2021. The milestone also reflects renewed interest and investment in the crypto market, which had seen a prolonged decline. in recent months.
Bitcoin’s record-setting rally drives market growth
Still the biggest player in the crypto market, Bitcoin (BTC) has led the recent rally, climbing to a record high of $93,480 before stabilizing around $91,500. The cryptocurrency has doubled in value this year and is up nearly 30% since the November 5 US election, fueled by enthusiasm around potential US regulatory changes
“In general, this market is that bitcoin will break out first, and then the altcoins will follow,” said Matthew Dibb, chief investment officer at Astronaut Capital. This pattern has led to rising prices for other major tokens, such as Ether (ETH), which rose to $3,220, and Dogecoin (DOGE), which saw a remarkable increase of 140%.
Pro-Crypto Policies and Potential US Bitcoin Reserve
The Trump administration’s stance on cryptocurrency, along with an influx of pro-crypto lawmakers in Congress, has fueled optimism about reduced regulatory hurdles in the crypto sector. This favorable regulatory environment is seen as a significant driver of recent market gains, as it could potentially pave the way for wider adoption of cryptocurrencies.
Adding to the tension, Trump has hinted at establishing a “strategic bitcoin reserve” in the US, similar to the gold reserves held by the government. Although the details are still unclear, this proposal suggests a long-term commitment to Bitcoin, aligning it with traditional stores of value such as gold. David Glass, a digital asset strategist at Citi, commented: “The story of removing regulatory headwinds, along with the potential for a strategic bitcoin reserve, is boosting investor confidence.”
Institutional Investors Eye Crypto ETFs
The rise of the global crypto market has also been fueled by institutional interest, with the rise of crypto exchange-traded funds (ETFs) offering an indirect route for institutions to gain exposure to Bitcoin and other digital assets. According to Refinitiv Lipper, spot Bitcoin ETFs have attracted $4.05 billion in net inflows since November 6, a notable indicator of demand from financial institutions that typically avoid outright crypto holdings.
Carl Szantyr, managing partner at Blockstone Capital, remains optimistic, saying: “Bitcoin enthusiasts are known for making bold predictions, but reaching $100,000 by the end of the year seems possible given the current momentum.”
Continued caution amid market growth
Despite the positive outlook, the crypto market still faces challenges. While Bitcoin’s market cap continues to rise, the ecosystem remains volatile, with sectors such as non-fungible tokens (NFTs) yet to fully recover. The average selling price for NFTs has increased only slightly, from around $2,000 to $2,700, indicating limited growth in these more speculative corners of the market.
Singapore’s DBS Bank, which operates a digital exchange, has reported an increase in trading volume but noted that clients are not yet moving to more decentralized exchanges or exotic platforms. David Hui, Chief Commercial Officer of DBS Digital Exchange, explained, “We have not seen our clients move their assets towards more obscure market segments.”
Broader Implications for DeFi and Blockchain Adoption
Industry experts believe that the increased interest in the crypto market could drive further innovation in decentralized finance (DeFi) and blockchain-based services. Danny Chong, co-founder of DeFi platform Tranchess, noted: “There is increased interest and willingness to look at DeFi and other blockchain opportunities. If the market cap remains high, we may see deeper engagement in new and existing blockchain themes.”
The $3 trillion milestone could also spur interest in tokenizing real-world assets and expanding blockchain-based payment solutions, marking a shift toward a more integrated financial ecosystem powered by decentralized technology.
Future outlook for the global crypto market
As the global crypto market reaches new heights, investors and institutions alike are paying close attention to emerging trends. While the market remains volatile, the pro-cryptopolitical landscape and continued interest in digital assets from both private and institutional investors point to a promising future. With Bitcoin leading the charge and institutional support through ETFs growing, cryptocurrency market could continue its upward trajectory, paving the way for new opportunities in DeFi and blockchain innovation.
Featured image: Freepik
