Crypto market cap surpasses $3 trillion following recovery from trade policy shock

Coingecko’s aggregate data showed the total crypto market capitalization has reclaimed the $3 trillion milestone after weeks of market sell-offs triggered by Trump’s trade policies. Bitcoin also bounced back past the $95,000 mark for the first time in two months.

Driving the drop in global markets was an increase in imports, as companies rushed to front-run sweeping tariffs on autos, steel, aluminum, and goods from nearly every country. 

The digital asset’s market cap remains roughly 19% lower than its all-time high of $3.7 trillion recorded in December 2024. Bitcoin is currently trading at $96,297 at the time of publication, a 2.2% increase in the past 24 hours.

Crypto market capitalization reclaims $3 trillion

📈 Total Crypto Market Cap Reclaims $3T. Only BTC matters. pic.twitter.com/xgz0CkRBfM

— Alan Knitowski ∞/21M (@alanknit) May 1, 2025

The global crypto market capitalization is currently at $3.13 trillion, a 1.7% change in the last 24 hours. CryptoQuant’s Exchange Flow Data showed the net transfer volume from exchanges dropped by 18%, indicating reduced selling pressure from investors. 

Bitcoin has also had a positive week, trading above the $95,000 mark for the first time in two months. The digital asset has had a 3.75% surge in the last seven days and is trading slightly above $96K.

BTC’s incline coincided with a significant $3.06 billion inflow into U.S. spot Bitcoin ETFs. Geopolitical developments also added momentum to the rally after U.S. President Donald Trump announced a partial easing in the U.S.-China trade war.

On-chain data showed Stablecoins on Solana reached a new all-time high with a $13.11 billion market cap, marking a $400 million weekly increase. The TRUMP token also surged 60% after news of a private dinner event for its top 200 holders, while Fartcoin reclaimed a $1 billion market cap.

The rally of crypto assets continued as Cantor Fitzgerald’s new chairman, Brandon Lutnick, announced the formation of Cantor Equity Partners in collaboration with SoftBank, Tether, and Bitfinex. The firm said it aims to establish 21 Capital with an initial $3 billion in Bitcoin investment. 

Unichain also stood out in the DeFi sector with a 45% increase in DeFi TVL to $464 million after launching a $21 million liquidity campaign on April 15, causing a staggering 5,000% growth since then. Hyperliquid’s TVL reached an all-time high above $700 million, and its total market cap surpassed $570 million, marking a 100x increase from its February launch.

Crypto market rebound follows decline in U.S. growth for Q1

The virtual asset rebounded after concerning U.S. GDP numbers indicated economic decline in Q1 2025. Trump pointed the finger at former President Joe Biden due to the drop in global markets in response to the gross domestic product report. He wrote on Truth Social, “This is Biden’s Stock Market, not Trump’s.”

“Trump wanted to show strength this week. Instead, the numbers showed weakness. The U.S. economy is reacting to the disruption. China, for now, is getting a lift.”

-Joseph Foudy, Professor at NYU’s Stern School of Business.

GBP data showed the U.S. economy shrank for the first time in three years in the first quarter, raising concerns of a recession. China’s economy grew at a faster-than-expected annual rate of 5.4% in the same timeframe. Crypto market analytics firm FXLeaders speculated the economic slump was caused by companies accelerating imports ahead of President Trump’s tariffs on about 90 countries.

The U.S. dollar index was up 0.4% at 99.65 after hitting a three-year low below 98 early last week. The broader financial market also rallied last week along with crypto, with the Dow Jones Industrial Average rising by 2.5%, the S&P 500 by 4.6%, and the Nasdaq Composite gaining 6.7%. U.S. stocks also surged by 4% last week and are now up 14% from their April lows last week as the U.S. indicated signs it may soften its trade stance on China.

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