Why is the Crypto Market Up Today (May 8)?
Jakarta, Pintu News – The cryptocurrency market is on the rise today, with the total market capitalization increasing by about 3.26% in the last 24 hours to reach $3.09 trillion on May 8.
Today’s gains were led by Bitcoin and Ethereum , which rose by around 2.3% and 6% respectively. What are the reasons behind today’s crypto market gains?
Fear of Stagflation Considered “Good” for Crypto Assets
The Federal Reserve’s decision to keep interest rates fixed in the range of 4.25%-4.50% on May 7 has increased the appeal of crypto assets.
Fed Chairman Jerome Powell, in his post-meeting statement, highlighted the growing risk of stagflation – slow economic growth with persistent inflation – caused in part by Trump-era tariff policies.
Read also: Is a Gold Price Crash Coming? Experts Say Bitcoin Could Take Over the Market – Here’s Why!
“It looks like the Fed expects inflation and unemployment to both rise,” The Kobeissi Letter wrote on platform X, adding:
“They refrained from cutting rates to see which aspect of their dual mandate would surge first. Uncertainty is still high.”
This situation further elevates Bitcoin’s status as a store of value, often referred to as “digital gold.”
Investors worried about inflationary pressures eroding the value of fiat currencies started to turn to Bitcoin as a hedge, similar to the monetary easing period of 2020 when the crypto market skyrocketed.
“The Fed is worried about stagflation,” said Zach Pandl, head of research at Grayscale, in a post on X on May 7 after the Fed’s decision and press conference.
“We think it will be favorable for Bitcoin.”
Anticipation of US-UK Trade Deal Drives Market Optimism
US President Donald Trump’s administration is signaling a pro-crypto stance, and reports suggest that a trade deal with the UK is likely to be announced soon.
In a post on Truth Social on May 7, Trump stated that there would be a “big trade deal” with a “big and highly respected” country to be announced on May 8.
The New York Times reports that the country is the UK, citing information from three sources familiar with the matter.
The agreement between the US and the UK will mark a reduction in global trade tensions, boosting risk appetite across markets, including crypto assets.
Following the announcement, Bitcoin prices rose by up to 4%, extending a week-long rally as macroeconomic conditions improved.
Other major crypto assets have also followed Bitcoin’s lead, signaling a shift in market sentiment, characterized by the Crypto Fear & Greed index returning to the “greed” zone.
Read also: Donald Trump-Backed World Liberty Financial Voted for USD1 Airdrop!
Crypto Market Technical Rebound
From a technical point of view, today’s rise in TOTAL – the combined market capitalization of all cryptocurrencies – is part of a rebound that started from the $2.4 trillion support level.
Since then, the market has surged 30% and for the first time in two months is trading above $3 trillion. Notably, this area also coincides with the position of the 200-day simple moving average (SMA).
The last time the market capitalization was above $3 trillion was on March 3, before the tariff-induced sell-off brought it down to $2.27 trillion on April 7.
Currently, TOTAL’s market capitalization is around $3.03 trillion and is trying to break through the resistance zone between $3.1 trillion and $3.25 trillion.
If successful, this would be a signal that the bullish side is able to maintain the upward trend, with a target towards the previous record high above $3.69 trillion.
Meanwhile, the daily RSI indicator has risen steadily from oversold conditions at 30 on April 7 to 68 currently, indicating a strengthening bullish momentum.
That’s the latest information about crypto. Follow us on Google News to stay up-to-date on the world of crypto and blockchain technology.
Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app via Google Play Store or App Store now. Also, experience web trading with advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro. Pintu Pro Futures is also available, where you can buy bitcoin leverage, trade btc futures, eth futures and sol futures easily from your desktop!
*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
Reference:
- Cointelegraph. Why is the crypto market up today? Accessed on May 8, 2025
