The cryptocurrency market capitalization is currently at $3.68 trillion, and the back-to-back bullish momentum has sparked the debate over how soon it will reach $4 trillion in total value and what all crypto coins and tokens will be backing its growth.
To date, the highest market cap of the crypto market is recorded near to $3.83 trillion in late 2024, and most recently it has succeeded in touching the mark of $3.76 trillion.
The maturation in the market capitalization demonstrates the growing interest of the masses in digital assets and blockchain-based products rather than focusing on traditional investment products.
In today’s article, we will be discussing the primary catalysts that are anticipated to pave the path of the crypto market towards the $4 trillion mark. Also, we will explore the fundamental factors expected to back its development and further expansion.
Why is the crypto market expected to reach $4 trillion?
The crypto market is set to reach $4 trillion in the coming months due to a combination of strong price momentum, increasing institutional adoption, and positive macroeconomic sentiments.
One of the primary factors is the growing popularity, adoption, and prices of Bitcoin. When writing, it was trading at $118,021 and alone made $2.34 trillion of the current $3.68 trillion.
Ethereum is considered the 2nd most prominent crypto, which will help the crypto market to reach the much anticipated mark of $4 trillion. Currently, Ethereum is priced at $2,901 and has a market cap of $357.86 billion.
However, BNB has a market cap of $164.25 billion and is now priced at $2.77, with an intraday surge of 7.59%.
There are several hypotheses behind the market reaching $4 trillion, but one of the most prominent is Bitcoin reaching nearly $125k in prices and a whole $3 trillion in market capitalization.
Since the beginning of this year, Ether’s market cap has performed well, and on January 10, 2025, it was recorded at $615.24 billion. Experts say that if its cap reaches $1 trillion or near territory, there are higher chances that a push is expected in the wider market cap of the crypto market.
What fundamental factors could make a path towards $4 trillion?
The growing recognition of cryptocurrencies worldwide has widened the path for the brighter future of digital assets, from the approval of Bitcoin spot ETFs in 2024 to its importance surge among institutions, private listed companies, public listed companies, and individuals.
It is said that if 5% of total global institutional assets under management flow into Bitcoin, there is a higher chance of the market’s total value reaching $5 trillion or above.
The easing of rules and regulations for crypto trading in some leading nations has made trading of ETFs and custody easy for traditional traders without any hassle.
Cryptocurrencies’ usage in making payments has surged globally, and known companies such as Tesla, KFC, and others accept them as a mode of payment.
The relevancy of crypto has skyrocketed after blockchain and decentralized wallet integration with pre-existing financial giants. Payment leaders such as PayPal and many others now see decentralized technology as the future of traditional currencies.
What will change if the crypto market hits a $4T market cap?
With the crypto market reaching $4 trillion in the next few months, several changes are also approaching the market with the expansion of the size of the altcoin category, stablecoin category, memecoin, and AI coins.
However, after the growth to $4 trillion, Bitcoin prices are expected to meet more maturation, and the market is likely to reach $3 trillion after wider market adoption reaches $4 trillion.
In terms of price, BTC is expected to cross the $150k market, and Ethereum is likely expected to reach $5,000 to $6,000 with a market cap between $900 billion-$1.5 billion.
Following the crypto market reaching $4 trillion, there are more chances of strengthening investors’ belief in such blockchain-based products.
Persistent global inflation or currency devaluation in places like Argentina could drive demand for Bitcoin as “digital gold.” As we know, inflation in almost every nation is spiking, and the formation of crypto by nation could also see a boost after the $4 trillion mark is achieved.
