The broader cryptocurrency market has exploded to an incredible $4 trillion valuation. This historic boom has triggered a burst of excitement, particularly given the seismic policy changes currently unfolding in Washington. Regulators are still very much engaged in bringing cryptocurrencies into the regulatory fold of traditional financial activities. This rise is a sign of the blossoming of a new era for digital assets. Federal Reserve Chairman Jerome Powell is set to deliver a speech on regulation, which many analysts anticipate will provide further clarity on the future of cryptocurrency in the United States.
At the same time, U.S. Treasury Secretary Bessent will attend trade talks with the Chinese this Thursday in Switzerland. There will be key domestic regulatory action to watch as well. These conversations are some of the most important at play today, especially as they pertain to the deeply unsettled geopolitical arena, which threatens to upend global economic security. These are rapidly changing times within the crypto market. It is a typical example of what happens during a financial bubble, like the 2017 ICO boom, CryptoKitties bubble, NFT bubble of 2022 or any other financial mania.
Brent Donnelly, a well-respected market strategist, compared the current crypto treasury fad to previous financial manias.
“The crypto treasury fad is the 2025 equivalent of the ICO craze and CryptoKitties in 2017, the SPAC bubble in 2021, or the NFT mania in 2022.” – Brent Donnelly
Though there is a lot of hype and enthusiasm with the crypto market, we must proceed with caution. In fact, according to reports, people have been paying $2 for $1 worth of cryptocurrencies all year. This trend now seems to be reversing as the supply of digital currencies is literally unlimited.
“People were paying $2 for $1 worth of crypto this year, but that seems to have hit a wall now as the supply of these things will remain infinite until the joke becomes unfunny. That seems to be happening now.” – Brent Donnelly
Meanwhile, the U.S. economy looks to remain brightened by strong consumer spending data. The New York Federal Reserve’s Nowcast estimates a GDP growth of 1.7% for the second quarter and 2.4% for the third quarter, while the Atlanta Fed’s projection aligns with a 2.4% growth for Q2. This enduring economic dynamism resists forecasts of rising global stagnation.
Companies are already overcoming these industry shifts. By the end of May, the predicted cost of a swath of tariff actions have jumped to more than $34 billion. That’s no small potatoes – that’s a massive pothole-sized impact on a $29.3 trillion dollar economy. Moreover, 273 firms internationally had responded to tariffs as of July 22, according to Reuters.