Recently, the cryptocurrency market has shown a significant rebound. According to CoinWorld's news 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) rising 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, with increases of 2.5% and 4%, respectively.

The rebound in the cryptocurrency market is mainly due to the following reasons: First, the Federal Reserve's policy and concerns about stagflation. On May 7, Federal Reserve Chairman Powell announced that the target interest rate in the United States would remain unchanged at 4.25%-4.5%, suggesting that the economy will face stagflation risks. Investors view Bitcoin as digital gold for hedging against currency depreciation and inflation pressures. Second, the implementation of the UK-US trade agreement has alleviated global trade tensions, boosting investor confidence in risk assets. After the announcement, Bitcoin briefly rose by 4%, driving the overall market up.