- Crypto market cap hits $4.1 trillion, topping major tech corporations.
- ETF inflows have been some of the highest on record.
- Markets bet on a September Fed rate cut.
The crypto market is now worth more than Microsoft or Apple.
A weekend rally carried over into Monday blasted the total market value past $4.1 trillion to a new all-time high.
While that figure spans thousands of digital assets rather than a single company, the milestone is still a clear example of just how far the sector has come.
Nearly every major token is in the green, but the spotlight is on Bitcoin and Ethereum.
Bitcoin jumped 4% over the weekend to $122,200 on Monday morning, UK time, leaving it less than 1% shy of eclipsing July’s all-time high of $123,200.
Ethereum climbed to $4,350, its highest price since the 2021 bull run that peaked at $4,850, putting it about 12% below its all-time high.
The rally comes as fresh policy shifts, renewed exchange-traded fund inflows, and growing bets on US rate cuts inject new momentum into the top cryptocurrencies.
Key drivers
Three big forces are driving major cryptocurrencies like Bitcoin and Ethereum higher, analysts say.
First is Donald Trump’s executive order opening 401(k) retirement plans to crypto investments. With over $12 trillion in US retirement assets, even a modest allocation could translate into hundreds of billions in fresh buying.
“This may be one of the most pivotal moments in Bitcoin and crypto’s path to mainstream adoption,” Mena Theodorou, co-founder of Coinstash, said in comments shared with DL News.
Sustained pension fund inflows could “broaden adoption, help dampen volatility, and embed crypto more deeply into mainstream financial infrastructure,” Theodorou added.
Second is the return of ETF inflows. Bitcoin funds have seen eight weeks of net inflows in the past nine, adding roughly $10 billion over that period, nearly 20% of the $54 billion they’ve pulled in since launching in January 2024.
Ethereum funds are also moving fast, with $460 million flowing into spot Ether ETFs on Friday alone, the fourth-biggest day on record.
ETF Store president Nate Geraci noted on X that “eight of the top 10 Ether inflow days, including all of the top five, have happened in just the past month.”
Finally, a softer macro backdrop is fuelling rate-cut bets in the US.
“Weaker-than-expected economic data from the US has spurred investors’ beliefs that the Federal Reserve will cut interest rates by 25 basis points at its September meeting,” Simon Peters, crypto analyst at eToro, said in comments shared with DL News.
He added that this could “cause further tailwinds to cryptoasset prices and take the total market capitalisation higher.”
Futures markets now see an 88% chance of a Federal Reserve cut in September, a shift reminiscent of late 2024’s “rate cut rush” that doubled Bitcoin’s price in just four months.
Crypto market movers
- Bitcoin has gained 2.6% in value over the past 24 hours and is trading at $121,285.
- Ethereum is up 1% in the same period to $4,255.
What we’re reading
- Harvard pours $117m into Bitcoin ETF, topping its stakes in Google and Nvidia — DL News
- South Korea’s Crypto Traders Flock to $3.6 Billion Ether Hoarder — Bloomberg
- New Battle Pits Crypto Against Banks in Battle for Customer Data. But Can Everyone Win? — Unchained
- Bo Hines exits White House crypto post amid Bitcoin reserve mystery — DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
