Bitcoin’s record surge past $122K and Ethereum’s $4.3K rally drive the crypto market cap to a historic $4.2 trillion peak.
Institutional buying and blockchain innovations are fueling strong momentum while upcoming token unlocks may bring short-term volatility.
Altcoin season buzz grows as regulatory progress and big mergers like LayerZero-Stargate spark rallies across smaller crypto projects.
The cryptocurrency market is pushing into uncharted territory as total market capitalization smashes a record $4.2 trillion. With the new market capitalization, the cryptocurrency market has entered a high-stakes phase.
Bullish technical signs, robust institutional inflows, and mounting optimism regarding U.S. inflation statistics and ETF approvals are one of factors contributing to the spike.
As Santiment reported on X, Bitcoin led the charge, climbing past $122,000, while Ethereum broke above $4,300. Large-scale purchases from key players, including Strategy’s acquisition of 155 BTC worth $18 million, have fueled confidence. Strategy’s total Bitcoin holdings now stand at 628,946 BTC, valued at over $46 billion.
Source: Santiment
The company has been using Bitcoin for five years now. Additionally, as investors switched their money between Ethereum and Bitcoin, Ethereum enjoyed brief rallies, but Bitcoin remains the preferred long-term option.
Institutional Activity and Market Drivers
Besides Bitcoin and Ethereum’s performance, market sentiment received a boost from new developments in blockchain ecosystems. Injective’s $SBET introduced the first on-chain Digital Asset Treasury, enabling 24/7 leveraged access to Ethereum-based financial products. Additionally, firms like SharpLink and BMNR aggressively increased their ETH holdings, pushing their treasuries into the multi-billion range.
Multiple token unlocks across major projects which could inject short-term volatility, particularly with key U.S. inflation data, including CPI and PPI, set for release this week.
Moreover, historically weak trading patterns in the latter half of August may temper enthusiasm. Market optimism has also sparked talk of an impending altcoin season. Regulatory progress and active ETF filings have strengthened bullish sentiment across smaller tokens.
Furthermore, the LayerZero Foundation’s $110 million proposal to acquire Stargate aims to unify cross-chain protocols and retire STG tokens in favor of ZRO. This plan has received mixed reactions, with some STG holders feeling undervalued. Nonetheless, ZRO and STG prices rallied after the announcement.
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