Bitcoin Reclaims the $100,000 Milestone, Lifting the Total Market Cap Above $3.2 Trillion

With Bitcoin recovering the $100,000 milestone and Ether rising past $2,100, the market capitalization of cryptocurrencies jumped over 3 percent overnight.

The cryptocurrency market capitalization surged more than 3 percent overnight, pushing the total to its biggest level in eight weeks at over $3.2 trillion. These surges come as Bitcoin price recovered the $100,000 milestone, and Ether rose past $2,100.

A tentative US–UK trade agreement has reduced fears of escalating tariffs, boosting risk-on sentiment across global markets and spilling over into digital assets.

Moreover, investors are pricing in potential Federal Reserve rate cuts later this year after recent inflation data showed cooling price pressures, encouraging broader market inflows into high-beta assets like cryptocurrencies.

Spot Bitcoin ETFs recorded record daily inflows of $450 million, highlighting growing institutional demand for regulated crypto exposure and supporting Bitcoin’s upside momentum.

Major hedge funds and family offices are reportedly rotating profits from traditional equity portfolios into crypto, citing attractive risk-reward profiles amid stagnant bond yields.

Easing trade tensions between the US and China and parallel discussions between the UK and EU have improved global liquidity conditions, reducing one key headwind for cryptocurrencies.

On-chain analysts report a Bitcoin supply squeeze. Exchange balances have dropped by 25 percent year-to-date as long-term holders accumulate, intensifying the rally when combined with renewed buying pressure at the $100,000 support level.

Finally, Ethereum co-founder’s recent comments on scaling upgrades have reignited interest in ETH staking, driving Ether gains of over 4 percent today.

Solana and Avalanche outpaced the market, surging 6 percent and 5 percent respectively.

The current rally gets support by strong fundamentals, but profit-taking near all-time highs and potential regulatory crackdowns remain key risks.

Traders will keep an eye on upcoming US CPI figures and quarterly earnings reports for further direction.