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 enhance Bitcoin as a retailer of worth.
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Anticipated US-UK commerce deal and a technical rebound gasoline market optimism.
The cryptocurrency market is up right now, with the overall market capitalization rising by roughly 2.5% within the final 24 hours to succeed in $3.06 trillion on Might 8.
At the moment’s beneficial properties 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 resolution to hold 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 progress and protracted inflation — partly as a result of Trump’s tariff insurance policies.
“It seems the Fed sees each larger inflation and better unemployment forward,” The Kobeissi Letter mentioned on X, including:
“They’re holding off on chopping charges to see which a part of their twin mandate spikes additional. Uncertainty stays.”
This surroundings elevates Bitcoin’s standing as a retailer of worth, typically likened to “digital gold.” Buyers, cautious of inflationary pressures eroding fiat currencies, are turning to Bitcoin as a hedge, very similar to in the course of the 2020 financial easing interval when crypto rallied.
“The Fed is frightened about stagflation,” Zach Pandl, head of analysis at Grayscale, mentioned in a Might 7 put up on X after the Fed’s resolution and press convention.
“We predict that consequence 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 reviews recommend a commerce settlement with the UK may very well be introduced quickly.
In a Might 7 Reality Social put up, Trump mentioned {that a} “main commerce deal” with a “massive, and extremely revered, nation” can be introduced on Might 8. The New York Occasions reported that the nation can be the UK, citing three individuals conversant in the matter.
🇺🇸 JUST IN: President Trump publicizes 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) Might 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 — beneficial properties right now are a part of a rebound that began on the $2.4 trillion assist.
It has since rallied 30% to commerce above $3 trillion for the primary time in two months. Be aware that that is additionally the place the 200-day easy shifting 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 every 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 entails threat, and readers ought to conduct their very own analysis when making a call.
