The first half of 2025 saw a significant recovery in the cryptocurrency market, with the total market capitalization rebounding from US$2.8 trillion in March to US$3.39 trillion by June. This recovery was driven by a dovish shift in Federal Reserve policy and easing trade tensions. Bitcoin reached a new record high of US$111,970 in May, while Ethereum surged 43.9% following its Pectra upgrade. Stablecoins and tokenized real-world assets contributed to market stability, with the stablecoin sector expanding by 18.4% to US$233.88 billion. Traditional finance's involvement in crypto increased, marked by Circle's IPO and Robinhood's acquisition of Bitstamp. Regulatory changes included the repeal of the IRS broker rule and the passage of the GENIUS and CLARITY Acts, with expectations of further regulatory developments and increased stablecoin adoption by major retailers.