Key control:
-
The encryption market increased 2.5% on May 8, with its capitalization above $ 3 billion for the first time in more than eight weeks.
-
The constant rates of the Fed and the fears of stagflation increase bitcoin as a value reserve.
-
The American commercial agreement and a technical optimism of the rebound fuel market.
The cryptocurrency market has increased today, with the increase in total market capitalization by approximately 2.5% in the last 24 hours to reach $ 3.06 billion on May 8.
Today’s profits were led by Bitcoin (BTC) and Ethher (ETH), which have increased around 2.3% and 4%, respectively.
Stagflation fears “good” for cryptographic assets
The Federal Reserve decision of maintaining stable interest rates at 4.25% -4.50% on May 7 has reinforced Cryptos appeal. The comments subsequent to the meeting of the president of the FED, Jerome Powell, highlighted the increase in economic growth in the risks of stagflation and persistent inflation due to Trump’s tariff policies.
“It seems that the Fed sees a higher inflation and a greater inempleration ahead,” Kobeissi’s letter said in X, and added:
“They are retaining cutting rates to see which part of their double mandate further has. Uncertainty.”
This environment raises the state of Bitcoin as a value reserve, or compared with the “digital gold”. The investors, cautious of the inflationary pressures that erode the fiduciary coins, are resorting to Bitcoin as a coverage, as well as the duration of the 2020 monetary relief period when the cryptography recovered.
“The Fed is concerned about stagflation,” said Zach Pandl, Chief of Research of Grayscale, in a May 7 position in X after the decision and the Fed press conference.
“We believe that result would be good for Bitcoin.”
Anticipation or optimism of the American-Reeno-Real Trade Fuel Market
The president of the United States, Donald Trump, has indicated a Pro-Crypto position, and the reports suggest that a commercial agreement with the United Kingdom could soon be announced.
In a real social position of May 7, Trump said that an “important commercial agreement” with a “large and very respected country” would be announced on May 8. The New York Times reported that the country would be the matter with the matter.
🇺🇸 Just at: President Trump announces a “important commercial agreement” press conference scheduled for tomorrow at 10:00 am at the Oval office with “a large and very respected country.” pic.twitter.com/irsood0jrz
– Cointelegraph (@Cointelegraph) May 8, 2025
An agreement between the United States and the United Kingdom would indicate the decallation of global commercial tensions, increasing risk appetite in markets, including cryptocurrencies.
Related: Does the part of the ‘long -term transition’ in the long -term long -term transition ‘bitcoin continue to shine?
After this announcement, Bitcoin increased both 4%axis, extending its one -week rally as macroconomic conditions improve.
Other important cryptocurrencies also followed Bitcoin’s steps, indicating a change in the feeling of the market with the crypto and greed crypto index that returns to the territory of “greed.”
Cryptographic Market Technical Rebound
From a technical perspective, the total, the combined market capitalization of all cryptocurrencies, today’s profits are part of a rebound that began with the support of $ 2.4 billion.
Since then 30% has been recovered to operate above $ 3 billion for the first time in two months. Keep in mind that here is also where the 200 -day simple mobile average (SMA) is currently located.
The last time the market capitalization was above the $ 3 billion brand was March 3 before a sales sale with tariffs sent it to only $ 2.27 billion on April 7.
The total market limit, currently at $ 3.03 billion, seeks to break over the resistance zone between $ 3.1 billion and $ 3.25 billion.
If this happens, it would indicate the ability of bulls to maintain the upward trend, with the eyes placed at the maximum of all time greater than $ 3.69 billion.
The daily RSI has constantly increased from the conditions of oversight to April 30 to the current value of 68, a suggestion that the bullish impulse accelerates.
This article does not contain advice or investment recommendations. Each investment and trade movement implies risk, and readers must carry out their own investigation by making a decision.
