Crypto market cap surges past $3.2T as Bitcoin tops $100K again

With Bitcoin recovering the $100,000 milestone and Ether rising past $2,100, the market capitalization of cryptocurrencies jumped over 3 percent overnight. These surges have proved to boost the total worth above $3.2 trillion, its biggest level in eight weeks.

Macro Drivers

A tentative US–UK trade agreement has eased fears of escalating tariffs, bolstering risk-on sentiment across global markets and spilling over into digital assets.

Investors are also pricing in potential Federal Reserve rate cuts later this year after recent inflation data showed cooling price pressures, encouraging broader market inflows into high-beta assets like cryptocurrencies.

Institutional Adoption

Spot Bitcoin ETFs recorded record daily inflows of $450 million, underscoring growing institutional demand for regulated crypto exposure and supporting Bitcoin’s upside momentum.

Major hedge funds and family offices are reportedly rotating profits from traditional equity portfolios into crypto, citing attractive risk-reward profiles amid stagnant bond yields.

Technical Catalysts

Easing trade tensions between the US and China and parallel discussions between the UK and EU have improved global liquidity conditions, reducing one key headwind for cryptocurrencies.

On-chain analysts highlight a Bitcoin supply squeeze. Exchange balances have dropped by 25 percent year-to-date as long-term holders accumulate, intensifying the rally when combined with renewed buying pressure at the $100,000 support level.

Altcoin Performance

Ethereum’s co-founder’s recent comments on scaling upgrades reignited interest in ETH staking, driving Ether gains of over 4 percent today.

Notable altcoins like Solana and Avalanche outpaced the market, jumping 6 percent and 5 percent respectively.

Market Outlook

Analysts caution that while the current rally gets support by strong fundamentals, profit-taking near all-time highs and potential regulatory crackdowns remain key risks.

Traders are advised to watch upcoming US CPI figures and quarterly earnings reports for further direction.