The global cryptocurrency market capitalization has surpassed $4 trillion for the first time, igniting market enthusiasm during "Crypto Week."

After the passage of a landmark cryptocurrency bill in the United States, investors expect hundreds of billions of dollars to flood in, with the total market capitalization of the cryptocurrency market surpassing $4 trillion for the first time on Friday.

This week, the price of Bitcoin briefly reached a historic high of over $123,000, while other tokens such as Ethereum and Solana also saw significant increases. According to digital asset data provider CoinGecko, as of Friday, the total market capitalization of cryptocurrencies has exceeded $4 trillion.

The cryptocurrency industry's market capitalization surpassing $4 trillion marks a significant rebound since the major crash in the crypto market in 2022. At that time, the collapse of the FTX exchange pulled the market capitalization down to about $800 billion. When the price of Bitcoin briefly fell to around $16,000, many investors exited the market, believing that the risks of crypto assets were too high.

Industry insiders point out that the latest trends in the crypto market coincide with the U.S. introducing a series of legislative measures, which is one of the most significant steps toward mainstream adoption of cryptocurrencies. Institutional funds that have been on the sidelines are now waiting for clarity on such policies, and they will begin to enter the market.

On Thursday local time, the U.S. House of Representatives overwhelmingly voted to pass three major cryptocurrency bills. Among them, the GENIUS Act, related to stablecoin regulation, received 308 votes in favor, which is 2.5 times the 122 votes against, with over 100 Democratic lawmakers switching sides to support it. The House also passed independent legislation regarding the market structure of digital assets and prohibiting the issuance of Central Bank Digital Currency (CBDC). The related bills still require a vote in the Senate.

Currently, the cryptocurrency industry has gained strong support from former President Trump. Trump has vowed to make the U.S. the "global crypto capital." He has initiated or supported multiple token projects and appointed officials who support cryptocurrencies. David Sacks, the AI and cryptocurrency director appointed by Trump, commented on the X platform, "This is a significant victory for cryptocurrency in the House of Representatives."

The market expects that stablecoin legislation will clear the way for Wall Street banks, asset management firms, and other companies to invest in digital assets or create their own tokens. Executives from banks such as Bank of America, Citigroup, and JP Morgan have stated that once the GENIUS Act becomes law, they will create their own stablecoins.

Trump is also preparing to sign an executive order allowing the $9 trillion U.S. pension market to invest in crypto assets and other alternative investments.

However, critics warn that tying cryptocurrencies more closely to the traditional financial system could pose serious risks when the market crashes again. Democratic Senator Elizabeth Warren stated that the GENIUS Act lacks necessary fundamental safeguards and fails to ensure that stablecoins won't trigger a collapse of the entire financial system. She also pointed out that the issuance of stablecoins by private companies carries the risk of concentrating too much economic power in the hands of a few