Recently, the cryptocurrency market has shown a significant rebound. According to CoinWorld, Bitcoin (BTC) has surpassed $97,000, rising 3.16% in 24 hours, while Ethereum (ETH) has increased by 2.00%, standing above $1,800. The total market capitalization of cryptocurrencies broke $3 trillion on May 8, reaching an eight-week high, with a single-day increase of 2.5%.

The rebound in the cryptocurrency market is mainly attributed to the following reasons: first, concerns over the Federal Reserve's policy and stagflation; Fed Chairman Powell announced that the target interest rate would remain unchanged, and the market expects the economy may face stagflation risks, leading investors to view 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 investor confidence in risk assets. Third, several US states have introduced legislation allowing cryptocurrencies to be included in strategic reserves, injecting confidence in the value of cryptocurrencies. Fourth, the US stablecoin bill is about to pass, with several giants entering the stablecoin market, bringing more application scenarios for cryptocurrencies.

Regarding the future trend of the cryptocurrency market, some believe that if the market can stabilize liquidity and digest structural risks, it may welcome a new upward cycle. However, factors such as insufficient liquidity over the weekend and macroeconomic shocks may still lead to uncertainty in the market in the short term.