The capitalization of the crypto market is breaking records. And here's why

The material is not an investment recommendation

In just one night from August 10-11, the total value of the cryptocurrency market rose to a record $4 trillion. This figure is already a third higher than forecast values by the end of 2025. The fact is that bitcoin has risen sharply, which is already trading at 1% of the all-time high.

What factors influenced the growth of bitcoin, and whether it will be able to consolidate its success for a long time — in the Izvestia article.

What influenced the growth of cryptocurrencies

• The crypto currency market is showing strong growth after slowing down in July. Bitcoin recovered and grew overnight on August 11 from $118 thousand to $122,150. This happened after a deep drop in July amid a decrease in available digital assets on exchanges and fluctuations in demand for current sales of exchange-traded investment funds (ETFs) (portfolios of securities that can only be bought on the exchange).

• Interest in cryptocurrencies returned after US President Donald Trump signed a decree on August 7 allowing pension funds to invest savings in digital assets. Also, the activity of the crypto markets may be explained by the expectation of the current consumer price index in the United States, which may affect the size of the Fed's key rate and the availability of money to the market.

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• The alternative cryptocurrency ether (ETH) is also growing, which appeared on the basis of the new generation blockchain platform Ethereum. For three years, ether has been falling in the crypto markets, but on August 4, for the first time in a long time, it reached a value of $ 4,000. The trend change was facilitated by the introduction of staking on the platform, that is, the ability to block a crypto asset to generate passive income. This option attracted large corporate investors such as Black Rock to Ethereum and raised the value of assets.

• Market speculation also played a role. One of the holders of Ethereum is the Trump family's crypto project, World Liberty Financial. The eldest son of the US president, Eric Trump, openly expressed support for Ethereum on August 7. The richest man in the world and former Trump associate Elon Musk is also among the investors of the platform. Currently, ETH has become the second most popular digital asset and has proven to be the fastest growing cryptocurrency on the market.

The risks of increased interest in the crypt

• The main danger of cryptocurrencies is their high volatility. Increased interest in the crypto market may prompt some companies to get rid of cryptocurrencies while they are at their peak, and lead to a drop in shares of digital asset management companies. And this, in turn, can lead to a domino effect for the entire crypto market.

If Bitcoin is relatively stable, then Ethereum seems to be a more risky and even speculative asset. It is difficult to predict how long the uptrend will last, and there is a danger that the most nervous investors will buy cryptocurrencies at high rates and lose money when the value of the asset in the market begins to fall.

Why is this important?

• The fact that digital currencies are becoming part of retirement savings in the United States shows that cryptocurrency has evolved from a speculative asset into a long-term investment strategy. Experts consider bitcoin as a more reliable digital currency: it remains the main and leading digital asset, since it is in it that the value of alternative cryptocurrencies is measured.

• The historical peak of bitcoin's growth has not yet been passed: on July 14, its value rose above a record $123 thousand. At the same time, the bitcoin market is not overheated yet — the cryptocurrency may continue to grow until September, when an adjustment will be made. It makes sense to consider this digital asset as a long-term investment.

During the preparation of the material, Izvestia interviewed:

• Evgeny Kogan, a crypto expert and founder of the Bitkogan investment company;
• asset manager, cryptocurrency expert Alexey Surujiu.