Crypto Market Surges Past $3 Trillion as Bitcoin Nears $100K Amid Trade Deal Hopes and Fed Signals

Crypto Market Rises on Optimism Over Trade Deal, Fed Signals, and Technical Momentum

The cryptocurrency market posted strong gains on May 8, with total market capitalization climbing 2.5% to over $3.06 trillion — its highest level in more than two months. This rally was led by Bitcoin (BTC) and Ether (ETH), which rose approximately 2.3% and 4%, respectively. Bitcoin is now trading just below $100,000, a level that could soon be breached if the current momentum holds.

Crypto market performance May 8. Source: Coin360

Fed’s Steady Rates, Stagflation Fears Boost Bitcoin’s Store-of-Value Appeal

A key driver of the market’s move was the Federal Reserve’s decision on May 7 to keep interest rates steady at 4.25%-4.50%. Fed Chair Jerome Powell acknowledged rising stagflation risks — a rare combination of economic stagnation and high inflation. This outlook, compounded by continued tariff policies, has reignited Bitcoin’s appeal as “digital gold,” with investors seeking a hedge against deteriorating fiat value.

“The Fed is worried about stagflation,” said Zach Pandl, head of research at Grayscale. “We think that outcome would be good for Bitcoin.”

Source: The Kobeissi Letter

Anticipated US-UK Trade Deal Lifts Risk Appetite

Adding fuel to the rally, former President Donald Trump hinted at a “major trade deal” announcement with a “highly respected” country, expected to be the UK. The New York Times confirmed the deal is imminent, citing insider sources.

A potential US-UK agreement would ease global trade tensions, lifting investor sentiment across risk assets — including cryptocurrencies. As markets respond to this prospect, Bitcoin has extended its recent gains, with broader crypto sentiment turning positive, as reflected in the Crypto Fear & Greed Index returning to “greed” territory.

Crypto Fear and Greed Index. Source: Alternative.me

Technical Rebound Confirms Bullish Momentum

From a technical standpoint, the combined market capitalization of all cryptocurrencies (referred to as TOTAL) has rebounded nearly 30% from the $2.4 trillion support level. It now trades above the $3 trillion mark, aligned with its 200-day simple moving average — a critical technical milestone.

The recent surge reflects a strong bullish recovery after the market fell to $2.27 trillion in early April following tariff-related volatility. With the daily RSI climbing from oversold levels (30) to a current reading of 68, the market exhibits strengthening bullish momentum.

TOTAL now faces a critical resistance range between $3.1 trillion and $3.25 trillion. A breakout above this level would signal further upside potential, possibly toward the all-time high near $3.69 trillion.

TOTAL crypto market capitalization daily performance chart. Source: TradingView

Conclusion

Macroeconomic uncertainty, central bank caution, and positive geopolitical developments have converged to drive renewed investor interest in crypto. With Bitcoin nearing six figures and broader market sentiment improving, the crypto market appears poised for further upside — provided key technical and geopolitical catalysts continue to align.