Why is the crypto market up today?
Key takeaways:
The crypto market is up 2.5% on May 8, with its capitalization above $3 trillion for the first time in over eight weeks.
Fed's steady rates and stagflation fears boost Bitcoin as a store of value.
Anticipated US-UK trade deal and a technical rebound fuel market optimism.
The cryptocurrency market is up today, with the total market capitalization rising by approximately 2.5% in the last 24 hours to reach $3.06 trillion on May 8.
Today’s gains were led by $BTC and $ETH , which have risen around 2.3% and 4%, respectively.
Anticipation of US-UK trade deal fuels market optimism
The US President Donald Trump administration has signaled a pro-crypto stance, and reports suggest a trade agreement with the UK could be announced soon.
In a May 7 Truth Social post, Trump said that a “major trade deal” with a “big, and highly respected, country” would be announced on May 8. The New York Times reported that the country would be the UK, citing three people familiar with the matter.
A US-UK deal would signal the de-escalation of global trade tensions, boosting risk appetite across markets, including cryptocurrencies.
From a technical perspective, TOTAL’s — the combined market capitalization of all cryptocurrencies — gains today are part of a rebound that started at the $2.4 trillion support.
It has since rallied 30% to trade above $3 trillion for the first time in two months. Note that this is also where the 200-day simple moving average (SMA) currently sits.
The TOTAL market cap, currently at $3.03 trillion, seeks to break above the resistance zone between $3.1 trillion and $3.25 trillion.
If this happens, it would signal the ability of the bulls to sustain the uptrend, with their eyes set on the all-time highs above $3.69 trillion.
The daily RSI has increased steadily from oversold conditions at 30 on April 7 to the current value of 68, suggesting the bullish momentum is accelerating.