Key takeaways:
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The crypto market is up 2.5% on Might 8, with its capitalization above $3 trillion for the primary time in over eight weeks.
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Fed’s regular charges and stagflation fears increase Bitcoin as a retailer of worth.
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Anticipated US-UK commerce deal and a technical rebound gas market optimism.
The cryptocurrency market is up at this time, with the entire market capitalization rising by roughly 2.5% within the final 24 hours to succeed in $3.06 trillion on Might 8.
As we speak’s positive factors had been led by Bitcoin (BTC) and Ether (ETH), which have risen round 2.3% and 4%, respectively.
Stagflation fears “good” for crypto belongings
The Federal Reserve’s choice to maintain rates of interest regular at 4.25%-4.50% on Might 7 has bolstered crypto’s enchantment. Fed Chair Jerome Powell’s post-meeting remarks highlighted rising stagflation dangers — sluggish financial development and chronic inflation — partly on account of Trump’s tariff insurance policies.
“It seems the Fed sees each larger inflation and better unemployment forward,” The Kobeissi Letter stated on X, including:
“They’re holding off on slicing charges to see which a part of their twin mandate spikes additional. Uncertainty stays.”
This atmosphere elevates Bitcoin’s standing as a retailer of worth, usually likened to “digital gold.” Traders, cautious of inflationary pressures eroding fiat currencies, are turning to Bitcoin as a hedge, very like in the course of the 2020 financial easing interval when crypto rallied.
“The Fed is nervous about stagflation,” Zach Pandl, head of analysis at Grayscale, stated in a Might 7 publish on X after the Fed’s choice and press convention.
“We expect that final result can be good for Bitcoin.”
Anticipation of US-UK commerce deal fuels market optimism
The US President Donald Trump administration has signaled a pro-crypto stance, and studies recommend a commerce settlement with the UK could possibly be introduced quickly.
In a Might 7 Reality Social publish, Trump stated {that a} “main commerce deal” with a “huge, and extremely revered, nation” can be introduced on Might 8. The New York Occasions reported that the nation can be the UK, citing three folks accustomed to the matter.
🇺🇸 JUST IN: President Trump proclaims a “main commerce deal” information convention scheduled for tomorrow at 10:00 AM within the Oval Workplace with “a giant, and extremely revered nation.” pic.twitter.com/irsood0JRZ
— Cointelegraph (@Cointelegraph) May 8, 2025
A US-UK deal would sign the de-escalation of worldwide commerce tensions, boosting threat urge for food throughout markets, together with cryptocurrencies.
Associated: Falling DXY a part of US monetary system’s ‘long-term transition’ — Will Bitcoin proceed to shine?
Following this announcement, Bitcoin rose as a lot as 4%, extending its weeklong rally as macroeconomic circumstances enhance.
Different main cryptocurrencies additionally adopted in Bitcoin’s footsteps, signaling a shift in market sentiment with the Crypto Concern & Greed Index returning to “greed” territory.
Crypto market technical rebound
From a technical perspective, TOTAL’s — the mixed market capitalization of all cryptocurrencies — positive factors at this time are a part of a rebound that began on the $2.4 trillion help.
It has since rallied 30% to commerce above $3 trillion for the primary time in two months. Observe that that is additionally the place the 200-day easy transferring common (SMA) at the moment sits.
The final time the market cap was above the $3 trillion mark was on March 3 earlier than a tariff-fueled sell-off despatched it to as little as $2.27 trillion on April 7.
The TOTAL market cap, at the moment at $3.03 trillion, seeks to interrupt above the resistance zone between $3.1 trillion and $3.25 trillion.
If this occurs, it might sign the power of the bulls to maintain the uptrend, with their eyes set on the all-time highs above $3.69 trillion.
The day by day RSI has elevated steadily from oversold circumstances at 30 on April 7 to the present worth of 68, suggesting the bullish momentum is accelerating.
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a choice.
