Crypto Market Cap Hits Record $4.15 Trillion

Trends 13.8.2025

The global cryptocurrency market reached another historic milestone earlier this week, with total market capitalization climbing to nearly $4.15 trillion—its highest level ever.

Among the top performers is Ethereum, which celebrated its 10th anniversary on the market just days ago. Cryptocurrency Ethereum has been trading consistently above $4,000 since the second half of last week and is now only a few dozen dollars away from its all-time high. [1]

Bitcoin, meanwhile, continues its upward trend, with its price hovering near $120,000—also an all-time high.

The question is, what has fueled the recent surge in cryptocurrency markets? Two key factors stand out.

The first is the issuance of two executive orders by U.S. President Donald Trump, both favorable to cryptocurrencies. U.S. regulators are set to reconsider how cryptocurrency assets can be included in employer-sponsored retirement plans, with a view toward greater tolerance for their use.

The second factor is market expectations regarding the monetary policy of the Federal Reserve (the U.S. central bank). At its most recent meeting on July 30, the Fed decided by majority vote to keep the base interest rate at its current range of 4.25% to 4.5%.

However, the minutes [2] show that two members of the Federal Open Market Committee (FOMC)—Michelle W. Bowman and Christopher J. Waller—voted for a rate cut. Bowman, in particular, has emphasized in recent days that rates should be lowered. Her reasoning: U.S. inflation is close to the 2% target, and import tariffs are expected to have a negative impact on the U.S. economy. The next Fed meeting will be held on September 16–17. [3]

How does Fed policy affect cryptocurrencies? If interest rates are reduced, borrowing becomes cheaper. This, in turn, lowers the cost of financing investments, including in assets such as stocks and cryptocurrencies.

The market will then expect asset prices to rise, likely driving growth as soon as such expectations take hold. In other words, investors will rush to buy assets before they become more expensive—ultimately driving prices higher.

However, if markets anticipate a September rate cut and it fails to materialize, the opposite effect could occur. Disappointment may prompt some investors to sell stocks or cryptocurrencies, as their expectations for price growth remain unmet. For this reason, it will be important to monitor statements from FOMC members, who ultimately decide U.S. base interest rates.


Sources:

[1] https://fortune.com/crypto/2025/08/11/ethereum-price-today-bitcoin-price-crypto-market-capitalization-all-time-high/

[2] https://www.federalreserve.gov/monetarypolicy/files/monetary20250730a1.pdf

[3] https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm

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