Bitcoin, Ethereum Rally Boosts Crypto Market Cap to $3trn
Bitcoin (BTCUSD) and Ethereum (ETHUSD) rallies have lifted global cryptocurrency market capitalisation to $3 trillion on Friday, with the two top digital assets trading in green on improved sentiment.
Trading data showed Bitcoin is trading above $88k, up from $85k level on Thursday amidst fluctuation in trading volume. Ethereum is trading above $2,900, though it is struggling to keep at $3000, fluctuation has been slowed albeit.
Bitcoin navigates regulatory crackdowns, exchange incentives, and quantum threats while bulls and bears clash on price trajectory. Supporting the uptrend, a new US bill proposes tax exemptions for small Bitcoin transactions, boosting its use as digital cash.
U.S. regulators ease crypto policies, allowing banks to explore Bitcoin services like custody and tokenized deposits, facilitating institutional Bitcoin inflows, leading to $457 million managed by Fidelity, BlackRock, and more, ultimately boosting ETF assets over $112 billion.
The crypto market rose 0.76% over the last 24h, partially recovering from recent losses. Analysts said today’s gains reflect cautious optimism around regulation and derivatives-driven momentum, but remain fragile against macro headwinds.
In Taiwan, Government confiscates $18 million in BTC from criminal probes, raising custody challenges. Taiwan’s Ministry of Justice disclosed custody of 210.45 BTC worth $18 million, 2,429 ETH, and stablecoins seized during fraud and money laundering investigations.
Assets remain under judicial control pending court decisions on restitution, auctions, or state forfeiture. Lawmakers are pushing for clearer crypto management rules amid volatility and custody challenges.
Crypto analysts said Bitcoin faces a trifecta of regulatory action, market-driven liquidity, and existential tech risks.
Top market analysts noted that while exchange incentives and institutional accumulation – BitMine’s $229 million ETH buy offer near-term support, quantum vulnerabilities and Taiwan’s seizure spotlight systemic challenges.
Ethereum climbed by 0.9%, slightly outperforming the broader crypto market. The uptick aligns with bullish technical signals and DeFi dominance, though ETH remains down 7.9% this week.
Analysts said the current ETHUSD movement reflects tactical buying around DeFi strength and oversold technical countered by broader market caution. Positive price movement is restricted as margin calls forced selling, particularly in altcoins.
Crypto market data showed that verage funding rate fell 69% monthly, signalling reduced appetite for leveraged longs. BTC liquidations hit $173 million, suggesting leveraged traders amplified moves.
As of the latest daily update, BlackRock’s IBIT led inflows while Fidelity’s FBTC led outflows in Bitcoin (BTC) spot ETFs, per vendor flow trackers. The latest published tally shows IBIT leading inflows and FBTC leading outflows, indicating a split in institutional positioning day over day. Bitcoin Rises to $88K as Crypto Investors Sentiment Improves
