TLDR
- Crypto market cap jumped $78 billion to $3.90 trillion following the US-EU trade agreement announcement
- Bitcoin trades near $120,000 resistance while Ethereum approaches $4,000 on institutional buying
- President Trump signed the GENIUS Act, providing the first major federal crypto law and regulatory clarity
- Ethereum ETF inflows exceeded $2.2 billion last week, driving institutional adoption
- Altcoins outperformed with BNB hitting new all-time highs and Solana jumping nearly 7%
The cryptocurrency market experienced a major surge on July 28, 2025, with the total market cap climbing $78 billion to reach $3.90 trillion. The rally was primarily driven by the announcement of a historic trade agreement between the United States and European Union.
The US-EU trade deal, which imposes a 15% tariff on EU exports, has strengthened economic ties between the two regions. This development has boosted investor confidence across risk assets, including cryptocurrencies, as markets react positively to reduced trade tensions.
Bitcoin currently trades at $119,517, approaching the critical $120,000 resistance level that has challenged the cryptocurrency for two weeks. The leading digital asset has maintained its position above $119,000 throughout the trading session.
Ethereum has shown strong performance, approaching the $4,000 mark driven by heavy institutional buying. The second-largest cryptocurrency by market cap has benefited from robust ETF inflows, with last week’s institutional investments surpassing $2.2 billion.
The macroeconomic environment has provided additional support for crypto assets. A 90-day pause in US-China tariffs has further reduced global trade tensions, while speculation about potential Federal Reserve interest rate cuts has encouraged risk-taking behavior among investors.
Regulatory Developments Drive Confidence
President Trump recently signed the GENIUS Act, marking the first major federal cryptocurrency law in US history. This regulatory milestone has provided much-needed clarity for institutional participants and has contributed to improved market sentiment across the sector.
The regulatory clarity comes at a time when institutional adoption continues to accelerate. Ethereum ETF products have seen particularly strong demand, with weekly inflows indicating growing appetite among professional investors for direct cryptocurrency exposure.
Technical indicators across major cryptocurrencies show bullish alignment, with most moving averages pointing upward. The Fear & Greed Index sits firmly in “Greed” territory, reflecting growing confidence among traders and investors.
Altcoin Performance Outshines Bitcoin
Bitcoin dominance has declined as capital rotates into alternative cryptocurrencies. Binance Coin (BNB) reached a new all-time high during today’s trading session, while Solana (SOL) jumped nearly 7% as investors seek higher returns.
NFT and DeFi markets have also experienced increased activity and volume. This broader sector rotation suggests investors are expanding beyond Bitcoin and Ethereum into smaller-cap opportunities.
For Bitcoin to continue its upward trajectory, it must break above the $120,000 resistance level and establish it as support. Successfully clearing this barrier could open the path toward $122,000 and potentially a retest of its all-time high of $123,218.
The crypto market’s ability to hold the $3.90 trillion support level will determine whether this rally can extend toward the $4.00 trillion milestone. Current momentum suggests continued institutional buying and positive macroeconomic conditions are supporting the upward trend.
