The market for cryptocurrencies is worth more than 4 trillion dollars (3.4 trillion euros) for the first time. This is according to data from crypto information provider CoinGecko.
Bitcoin rose to a record level of more than 123,000 dollars this week, although the price later dropped somewhat. The best-known cryptocurrency accounts for approximately 60 percent of the value of the entire sector. Bitcoin has risen sharply in value this year, because US President Donald Trump wants to pursue crypto-friendly policies.
The prices of other cryptocurrencies, such as ether and solana, also showed significant increases this week. This is because federal legislation has been approved in the United States for broader use of digital currencies in the financial world. The expectation is that even more money from large investors will flow into the crypto sector as a result.
Trump signed a law on Friday that regulates so-called stablecoins (digital currencies that are linked to a more stable value, such as the dollar or gold). According to experts, this makes the crypto sector more mature. Trump is also working on a broader law on the structure of the crypto market in the US.
With the new record value, the market has clearly recovered from scandals such as the collapse of the major crypto exchange FTX in 2022. At that time, the market value shrank to approximately 800 billion dollars. Many investors started selling cryptos due to concerns about the risks of those investments.
Experts now think that the value of Bitcoin could rise to 150,000 dollars. Analysts expect that institutional investors such as pension funds will invest more money in the sector.