The total crypto market capitalization has broken through $2.77 trillion, driven by a broad-based rally across digital assets. Bitcoin is back in the green above $79,000, while XRP is posting the strongest performance among large-cap cryptocurrencies.

Behind this move, one major regulatory catalyst is taking center stage: comments from U.S. Treasury Secretary Scott Bessent on the CLARITY Act are reigniting investor risk appetite. Here is what is really happening in the markets.

A Broad-Based Rally: Bitcoin, XRP and Ethereum Take the Lead

Over the past 24 hours, the crypto market has gained +2.3%, pushing total market capitalization to $2.77 trillion. Bitcoin is leading the charge with a +2.1% gain, trading at $79,187. The world’s largest digital asset is consolidating above a key support level, reinforcing short-term bullish sentiment.

XRP stands out clearly among the majors with a surge of +6.4% to $1.46, significantly outperforming the broader market. This outperformance is no coincidence: Ripple‘s asset remains particularly sensitive to U.S. regulatory developments, and positive signals coming out of Washington are acting as a direct catalyst on its price action. Ethereum, meanwhile, is up +1.1% to $2,541 — a more modest gain, but one that confirms the overall bullish momentum.

This kind of coordinated rally — where Bitcoin, major altcoins and tokens with high regulatory exposure all move higher simultaneously — reflects a return of risk-on sentiment across the entire digital asset class. The market is not simply bouncing off a technical support level: it is responding to a fundamental shift in narrative.

The CLARITY Act: The Real Trigger Behind Today’s Rally

The primary catalyst behind this move is regulatory in nature. Scott Bessent, U.S. Secretary of the Treasury, has publicly stated that the CLARITY Act is “essential” for the American crypto ecosystem. This proposed legislation aims to establish a clear legal framework for distinguishing cryptocurrencies classified as commodities from those classified as securities.

For the markets, this kind of signal is decisive. Regulatory uncertainty has long weighed on digital asset valuations, particularly in the United States. A legislative clarification would open the door to broader institutional adoption, new regulated financial products, and a meaningful reduction in the legal risk that continues to hold many market participants back. XRP is a direct beneficiary of this narrative, with Ripple having been at the center of the debate over crypto asset classification and its long-running battle with the SEC.

This is not the first time that U.S. legislative progress has triggered a crypto market rally. The market is now pricing in a favorable adoption window, which mechanically translates into a compression of the risk premium and higher prices across the board. The correlation between regulatory sentiment and total market cap remains one of the most reliable indicators of the current cycle.

What On-Chain Data and Market Sentiment Are Revealing

Beyond price action, the underlying signals confirm the relative strength of this move. Bitcoin‘s recovery above $79,000 comes after a consolidation phase that tested the patience of bulls. Holding above this level is a positive technical signal, even though the market remains well below its all-time highs and volatility could return at any moment.

Overall market sentiment is shifting toward neutral to slightly bullish territory, following several weeks of sustained selling pressure. Trading volumes are rising alongside this rally — unlike low-volume bounces that are often dismissed as bull traps — which adds credibility to the move. Traders are now watching whether Bitcoin can consolidate above $79,000 and push toward the next resistance zone around $82,000 to $83,000.

For XRP, the +6.4% breakout in a single session deserves close attention. If the U.S. regulatory framework continues to evolve favorably over the coming weeks, the asset could reclaim significantly higher valuation levels. The market is already pricing in part of this scenario — which also implies a correction risk if legislative progress fails to materialize on schedule.