Recently, there has been a significant rebound in the cryptocurrency market. According to CoinWorld on May 7, the cryptocurrency market has stabilized and rebounded, with Bitcoin (BTC) rising 3.16% in 24 hours, surpassing $97,000, and Ethereum (ETH) increasing by 2.00%, standing above $1,800. On May 8, the total market capitalization of cryptocurrencies exceeded $3 trillion, reaching an eight-week high, with a daily increase of 2.5%. Bitcoin and Ethereum led the gains, rising by 2.5% and 4%, respectively.

The rebound in the cryptocurrency market can be attributed to the following reasons: First, the Federal Reserve's policy and concerns about stagflation. On May 7, Federal Reserve Chairman Powell announced that the U.S. would maintain the target interest rate at 4.25%-4.5%, implying that the economy would face stagflation risks. Investors are viewing Bitcoin as digital gold to hedge against currency devaluation and inflation pressures. Second, the implementation of the UK-US trade agreement has alleviated global trade tensions, boosting investment confidence in risk assets. Following the announcement, Bitcoin briefly surged by 4%, driving the overall market upward.