Recently, the cryptocurrency market has shown a significant rebound. According to CoinWorld news on May 7, the cryptocurrency market has stabilized and rebounded, with Bitcoin (BTC) rising 3.16% within 24 hours, breaking through $97,000, and Ethereum (ETH) rising 2.00%, standing above $1,800. On May 8, the total market capitalization of cryptocurrencies surpassed $3 trillion, reaching an eight-week high, with a daily increase of 2.5%; Bitcoin and Ethereum led the way with increases of 2.5% and 4%, respectively.

The main reasons for the rebound in the cryptocurrency market are as follows: First, concerns over the Federal Reserve's policies and stagflation. On May 7, Federal Reserve Chairman Powell announced that the United States would maintain its target interest rate at 4.25%-4.5%, suggesting that the economy would face stagflation risks, leading investors to view Bitcoin as digital gold, used to hedge against currency depreciation and inflation pressures. Second, the implementation of the UK-US trade agreement has alleviated global trade tensions, enhancing investor confidence in risk assets. Following the announcement, Bitcoin briefly surged by 4%, driving an overall market increase.