Cryptocurrency Price Rises to $4 Trillion: What’s Fueling the Surge?

Cryptocurrency Price Rises to many fold in just few month. From Market Crisis to Policy-Driven Boom, How the U.S. and Trump Are Powering the New Crypto Wave.

The global cryptocurrency market crossed $4 trillion in value in a stunning fortune reversal for a sector that was once seen as taboo.

The surge comes amid Donald Trump’s cheerleading campaign for cryptocurrencies. Why is Trump championing crypto? Has it finally been legitimised?

In 2020, cryptocurrencies were viewed with skepticism—often linked with scams, volatile markets, and shadowy players.

Fast forward to 2025, and the cryptocurrency market has now reached a staggering valuation of $4 trillion, surpassing the market capitalizations of some of the world’s largest economies.

For perspective, Canada’s entire stock market is worth about $3.5 trillion, the UK’s is around $3.1 trillion, and France stands at $3.4 trillion. Cryptocurrencies have officially gone mainstream.

What is Cryptocurrency ?

Cryptocurrency is a type of digital or virtual money that uses encryption (cryptography) for security.

It operates without a central bank and allows peer-to-peer transactions over the internet.

Examples include Bitcoin, Ethereum, Ripple (XRP), Litecoin, and Stablecoins like Tether (USDT), which are often backed by traditional currencies.

India’s Stance on Cryptocurrency?

In India Reserve Bank of India (RBI) cleared that Cryptocurrency is not legal tender in India. 

For further clarification you can visit RBI website.

Why Cryptocurrency Price Rises So Rapidly

The current surge in cryptocurrency prices isn’t just driven by speculation—it’s being fueled by policy, perception, and political support.

The most significant push came from the United States, where the government has started embracing crypto at a legislative level.

President Donald Trump, has thrown his weight behind crypto. Trump recently signed the Genius Act, the country’s first major crypto legislation.

His message was clear: The U.S. intends to become the world’s crypto capital.

This endorsement alone has had a cascading effect. Crypto, once a fringe movement, now enjoys growing institutional support, increased investment, and renewed public confidence.

The Genius Act: A Turning Point for Stablecoins

The Genius Act specifically targets stablecoins, a form of cryptocurrency that is pegged to the U.S. dollar.

This structure makes them less volatile and more attractive to investors wary of risk.

Under the new law, exchanges are required to hold the equivalent cash reserve for every stablecoin issued.

This move is being hailed as a step toward safer, more regulated digital finance, opening the door for broader public adoption.

Upcoming Crypto Bills Could Accelerate Growth

Beyond the Genius Act, two additional crypto bills are making their way through the U.S. Congress.

Of particular interest is a proposal to shift regulatory oversight from the powerful Securities and Exchange Commission (SEC) to a smaller, less aggressive authority.

This change could loosen regulatory pressure, allowing the industry to grow even faster.

This deregulatory approach is precisely what crypto lobbyists have long demanded—less interference and more room for innovation.

However, critics warn that such changes could lead to increased risk and potential instability if not managed carefully.

Trump’s Personal Stake in Crypto’s Future

Why has Trump suddenly become crypto’s most vocal champion? The answer may lie in personal interest.

Trump’s family reportedly holds over $2 billion worth of Bitcoin and has ties to a growing crypto business.

Trump has also established a “strategic crypto reserve” and appointed a “crypto czar” to steer U.S. policy.

His latest proposal—to allow retirement funds to invest in cryptocurrencies—could be a game-changer.

America’s retirement market is worth over $9 trillion. If even a fraction of that flows into crypto, prices will likely soar even higher.

Institutional Acceptance of Cryptocurrency: A New Era for Crypto

Perhaps the most telling sign of crypto’s rising legitimacy is the shift in attitude from major financial institutions.

Once dismissive of digital assets, banks like JPMorgan Chase, Bank of America, Citibank, and Morgan Stanley are now actively investing in the space.

JPMorgan, whose CEO Jamie Dimon once called Bitcoin “fraud,” is now preparing to offer loans backed by crypto assets.

Meanwhile, these same banks are exploring or launching their own stablecoins, hoping to dominate the growing sector.

This institutional involvement reduces risk for retail investors and brings much-needed credibility to the sector.

While Bitcoin and stablecoins are gaining trust, the industry must weed out bad actors and build long-term resilience.

Benefits of Cryptocurrency as Cryptocurrency Price Rises

A. Decentralised Nature of Cryptocurrency

• Cryptocurrencies operate without central banks, reducing government control and allowing peer-to-peer transactions.

B. Fast & Low-Cost Transfers

• Transactions are quicker and cheaper, especially for international payments, compared to traditional banking systems.

C. Security & Transparency

• Blockchain technology ensures secure, tamper-proof, and transparent records of all transactions.

D. Financial Inclusion

• Cryptos provide access to financial services for people without access to traditional banks, especially in developing countries.

E. High Return Potential

• Early investors in major cryptocurrencies have seen significant profits due to rapid value appreciation.

Problems of Cryptocurrency

A. Price Volatility is so high compared to traditional currency

•  Cryptocurrencies can experience extreme price fluctuations, making them risky for investors and unsuitable for stable transactions.

B. Lack of Regulation by country’s Central Banks.

• Many countries have unclear or no regulations, leading to legal uncertainty and potential misuse.

C. Frauds & Scams is so much associated

• The crypto market is prone to hacks, Ponzi schemes, and fake coins due to minimal oversight.

D. Environmental Impact

• Mining cryptocurrencies like Bitcoin consumes massive energy, contributing to environmental damage.

E. Limited Acceptance in world

• Cryptos are not widely accepted for everyday transactions, limiting their practical use in the real world.
• Many Countries like Nepal, China and other african countries banned Cryptocurrency.

Cryptocurrency Price Rises but Cautious Optimism Amid Crypto Boom

The cryptocurrency price rise to $4 trillion marks a historic milestone, driven by U.S. policy shifts, Trump’s endorsement, and institutional interest.

However, legitimacy must go hand-in-hand with responsibility. The crypto revolution is here—but it must be shaped by sound regulation and ethical leadership to truly succeed.

Read Also: Six Months of Trump as President