Crypto market gained momentum from Trump's policies and crossed the $4 trillion mark for the first time

The crypto space's market value hit almost four trillion dollars on Friday. The information has been obtained from data issued by cryptocurrency data aggregator Coingecko. It is a record for the crypto space. Clarity in regulation in the major markets, higher investor faith, and high inflow of institutional investment have propelled this space to new heights.

US House of Representatives passed a bill on Thursday to establish a regulatory framework for tokens of cryptocurrency tied to the US dollar. The cryptocurrency is referred to as a Stablecoin. Currently, the bill has been forwarded to President Trump. It will turn into a law after it is signed by the President.

Darren Nathan, head of equity research at Hargreaves Lansdown, said that the outlook on the crypto industry has completely changed after Trump's policy came in, but despite this, lawmakers are still exercising some degree of caution.

House of Representatives lawmakers also passed two other crypto bills and sent them to the Senate for consideration. One bill creates a regulatory framework for crypto, while the other prohibits the US from issuing a central bank digital currency. Experts believe that this caution is a sign that even though governments are moving towards adopting crypto, they do not want to ignore its risks.

The growing crypto market emphasizes how high this industry has come from its speculative and marginal values. This achievement reflects the rapidly increasing acceptance and growth of this sector. The growing interest of asset managers, the introduction of new exchange-traded products, and widespread participation from retail to corporate users have made crypto a part of the mainstream financial system. Digital assets are no longer just an investment option but are increasingly shaping global financial policies and discussions.

The sector was last seen trading at a combined market value of $3.92 trillion as bitcoin, the world's largest cryptocurrency, fell 1.8%. Ether, the second-largest crypto token, was last seen rising 4.5%. It has more than doubled in the past three months.

Bitcoin hit a record high earlier this week by crossing the $120,000 mark. Brokerage firm Bernstein estimates it could reach $200,000 by the end of 2025. Shares of crypto exchange Ethereum were last seen trading 1% higher. Retail trading platform Ethereum, which also supports crypto trades, gained 3%.