The crypto market is back in the spotlight, soaring to a stunning $3 trillion in total value — and the real heroes behind this rally might surprise you.
How bond vigilantes saved the day
In a move straight out of an economic drama, bond vigilantes — a group of investors who sell bonds to discipline governments — have played a critical role in stabilizing financial markets.
As President Donald Trump rolled out sweeping new tariffs earlier this month, investors pushed back hard. They dumped U.S. Treasuries, sending yields on 10-year bonds soaring to 4.585% and 30-year bonds close to 5%, their highest levels since January.
This sharp move in the bond market raised borrowing costs for the U.S. government and derailed plans for massive unfunded tax cuts. It also forced the Trump administration to tread carefully, particularly regarding threats to remove Federal Reserve Chair Jerome Powell — a move that could have shaken global confidence in U.S. debt.
Crypto prices surge as fears ease
With the pressure from bond vigilantes forcing a softer stance from the government, risk assets like stocks and cryptocurrencies staged an epic comeback.
- Bitcoin (BTC) retested the crucial $95,000 resistance level, reaching its highest point in over a month.
- Meme coins like Brett (BRETT) surged by an eye-watering 95% in just seven days.
- Other major players — Virtuals Protocol (VIRTUAL), Official Trump (TRUMP), Sui (SUI), and Dogwifhat (WIF) — all gained over 50% during the week.
These rallies pushed the total cryptocurrency market capitalization above $3 trillion, a major psychological and technical milestone.
Crypto wasn’t alone. Traditional stock markets also celebrated, with the Dow Jones, Nasdaq 100, and major European indices like Germany’s DAX and France’s CAC 40 jumping over 10% from their monthly lows.
Why crypto may continue climbing
Several factors suggest the crypto rally could have legs:
- Tariff risks are easing as Trump signals openness to China talks — even if Beijing denies negotiations.
- Federal Reserve rate cuts could be back on the table if bond yields stay high and economic risks grow.
- Investor sentiment is improving as fears of reckless monetary policy interventions recede.
With political uncertainty cooling and risk appetite returning, Bitcoin and altcoins might have a clear path to new highs — at least for now.
