Key Takeaways:
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The Crypto market has increased by 2.5% on May 8 with its capitalization over $ 3 trillion for the first time in over eight weeks.
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Fed’s stable prices and stagflation fears Boost Bitcoin as a value of value.
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Expected trade agreement in USA-UK and a technical rebound fuel market optimism.
The cryptocurrency market has increased today, with the total market value increasing by approx. 2.5% in the last 24 hours to reach $ 3.06 trillion on May 8th.
Today’s winnings were led by Bitcoin (BTC) and Ether (ETH), which have risen around 2.3% and 4% respectively.
Stagflation fears “good” for crypto assets
Federal Reserve’s decision to keep interest rates stable with 4.25% -4.50% on May 7 has strengthened Crypto’s appeal. Fed-Chairman Jerome Powell’s comments after meetings highlighted rising stagflation risk-like economic growth and sustained inflation-part because of Trump’s customs policy.
“It seems that Fed sees both higher inflation and higher unemployment ahead,” Kobeissi said at X, adding:
“They keep cutting prices to see which part of their double mandate tips further. There is no uncertainty.”
This environment raises Bitcoin’s status as a value of value that is often compared to “Digital Gold.” Investors who are wary of inflation pressure that erode Fiat currency turns to Bitcoin as a hedge, just as during the monetary easing period by 2020 when Crypto gathered.
“Fed is concerned about stagflation,” said Zach Pandl, head of research at Grayscale, in a May 7 -post at X after Fed’s decision and press conference.
“We think the result would be good for Bitcoin.”
Expectation of trading in USA-UK is burning market optimism
US President Donald Trump administration has signaled a pro-crrypto posture, and reports suggest a trade agreement with the United Kingdom could soon be announced.
In a May 7 -Social Social Post, Trump said that a “major trade agreement” with a “large and highly respected country” would be announced on May 8. The New York Times reported that the country would be the UK, citing three people who are familiar with the case.
🇺🇸 Just in: President Trump announces a “Larger Trade Agreement” News Conference, which is scheduled for tomorrow at 1 p.m. 10am in the oval office with “a large and highly respected country.” pic.twitter.com/irsood0jrz
– COINTELEGRAPH (@COINTELEGRAPH) May 8, 2025
A US-UK agreement would signal the shell of global merchant voltages and increase risk appetite across markets, including cryptocurrencies.
Related: Falling DXY part of the US financial system’s ‘long-term transition’-will bitcoin continue to shine?
After this message, Bitcoin rose as much as 4%and extended its week’s long rally as macroeconomic conditions improve.
Other major cryptocurrencies also followed in Bitcoin’s footsteps, signaling a shift in market mood with the Crypto Fear & Greed Index, returning to the “greed” area.
Crypto Market Technical Rebound
From a technical perspective, the total amount – the combined market value of all cryptocurrencies – today is part of a rebound that started at $ 2.4 trillion support.
It has since collected 30% to trade over $ 3 trillion for the first time in two months. Note that this is also where the 200-day simple sliding average (SMA) is currently sitting.
The last time the market capital was over the $ 3 trillion trademark was on March 3 before a customs sale sent it to as low as $ 2.27 trillion on April 7.
The total market capital, currently at $ 3.03 trillion, is trying to break over the resistance zone between $ 3.1 trillion and $ 3.25 trillion.
If this happens, it will signal the bull’s ability to maintain the appearance, with their eyes set at all times over $ 3.69 trillion.
The daily RSI has risen steadily from oversold conditions at. 30 on April 7 to the current value of 68, suggesting that the bullish momentum is accelerating.
This article does not contain investment advice or recommendations. Each investment and trade movement involves risk, and readers should make their own research when making a decision.