Crypto Market Now Bigger Than High-Yield Bonds, Grayscale Reports

The year that went by was remarkable for the crypto market, as Donald Trump's win in the US election and the subsequent appointment of Paul Atkins as the SEC Chair triggered a Bitcoin rally to above $100,000. This resulted in the global crypto market cap crossing that of the inflation-linked bond market in the fourth quarter of 2024.

In Q4 2024, the crypto market cap exceeded the $3 trillion mark from $1 trillion. This was way over the global inflation-linked bond market cap, as per a report from Grayscale Research. The report further underlined how at one point the crypto market cap was twice as big as the US high-yield bond market in the last quarter.

However, this momentum wasn't sustained, and the crypto market cap was still short of toppling the hedge fund industry. It couldn't touch Japan’s equity market cap of $4.5 trillion either, as the crypto market cap was found to be at $3.3 trillion yesterday, December 31.

This unprecedented growth in the crypto market has been attributed to Trump’s victory in the November 5 election, which caused Bitcoin to gain over 35% on that day. Later in December, it went above the $100,000 mark, proving many analysts right. Most experts have predicted that the digital asset will cross $150,000 by 2025 end.