The market capitalization of the %Cryptocurrency sector that includes %Bitcoin (CRYPTO: $BTC) and %Ethereum (CRYPTO: $ETH) has reached $3.7 trillion U.S. following a strong rally in this year’s first half.
However, analysts note that the market cap has stalled to start the second half of 2025 as traders and institutional investors pull liquidity and rotate out of digital assets.
Bitcoin, the largest cryptocurrency by market capitalization, is currently trading at $116,250 U.S., having fallen from an all-time high of $123,000 U.S. reached in July.
Analysts also note that short-term speculators seem to be rotating out of cryptocurrencies amid heightened concerns about the U.S. economy and with stocks near record highs.
After strong rallies to start the year, smaller cryptocurrencies known as altcoins are also sliding lower, with XRP (CRYPTO: $XRP), %Solana (CRYPTO: $SOL) and %Dogecoin (CRYPTO: $DOGE) off their highs.
The one bright spot continues to be Ethereum, which has risen more than 40% in the last month as investors gravitate to its secure %Blockchain.
Also, the market capitalization of %Stablecoins is nearing $275 billion U.S., marking its seventh consecutive month of growth.
Stablecoins are cryptocurrencies whose value is pegged to another asset such as the U.S. dollar or price of gold. They are increasingly popular with institutional investors.
