As Bitcoin (BTC) approaches $100,000, the cryptocurrency market is experiencing a bullish trend today, reflecting investor optimism about a potential US-UK trade deal and strong technical patterns in the total crypto market capitalization.
Key Highlights
- Market Surge: On May 8, the crypto market rose by 2.5%, with the total market cap surpassing $3 trillion for the first time in over 8 weeks.
- Fed Policy Impact: The Federal Reserve’s decision to hold interest rates steady amid stagflation concerns has reinforced Bitcoin’s role as a store of value.
- Trade Deal Optimism: Anticipation of a US-UK trade agreement and a technical rebound are fueling positive sentiment.
Stagflation Fears Boost Crypto Assets
The Federal Reserve (Fed) maintained interest rates at 4.25%-4.50% on May 7, enhancing the appeal of cryptocurrencies. Fed Chair Jerome Powell highlighted rising stagflation risks due to slowing growth and persistent inflation—partly influenced by trade policies.
👉 Bitcoin’s role as "digital gold" strengthens in uncertain economic climates.
Analysts note:
"The Fed seems to anticipate higher inflation and unemployment. They’re delaying rate cuts to assess which part of their dual mandate deteriorates further."
This environment elevates Bitcoin’s status as an inflation hedge, mirroring its 2020 rally during monetary easing.
US-UK Trade Deal Spurs Market Confidence
The Trump administration’s pro-crypto stance and reports of an imminent US-UK trade deal have amplified market optimism.
On May 7, Trump announced a "major trade deal" with a "highly respected country," later identified as the UK. This development could ease global trade tensions, boosting risk appetite across markets, including crypto.
Following the news, Bitcoin (BTC) surged 4%, extending its weekly gains. Other major cryptocurrencies also rallied, with the Crypto Fear & Greed Index shifting back to "Greed," signaling improved sentiment.
Technical Rebound in Crypto Markets
Technically, the TOTAL crypto market cap is rebounding from a $2.4 trillion support level, now up 30% and reclaiming $3 trillion—a key resistance near the 200-day Simple Moving Average (SMA).
A breakout above $3.1–$3.25 trillion could signal sustained bullish momentum, targeting new all-time highs beyond $3.69 trillion.
The daily Relative Strength Index (RSI) rose from oversold conditions (30 on April 7) to 68, indicating accelerating upward momentum.
👉 Explore how Fed policies impact crypto markets.
FAQ
Q: Why is Bitcoin rising today?
A: Bitcoin is gaining due to Fed rate stability, stagflation concerns, and optimism around a US-UK trade deal.
Q: What’s driving the crypto market surge?
A: Key factors include technical rebounds, institutional interest, and macroeconomic policy shifts.
Q: How high can the crypto market cap go?
A: If resistance at $3.25 trillion breaks, the next target is $3.69 trillion, potentially setting new highs.