BTCUSD,ETHUSD Today’s main insights:

The cryptocurrency market has surged by 2.5% today, May 8, pushing the market cap above the $3 trillion mark for the first time in over two months. The Federal Reserve’s consistent rates and mounting stagflation concerns have enhanced Bitcoin’s appeal as a value reserve. The expected US-UK trade agreement and a market recovery are driving optimism.

Today’s cryptocurrency market surge has pushed the total market cap up by about 2.5% in the past 24 hours, hitting $3.06 trillion on May 8. The surge was primarily led by Bitcoin BTCUSD and Ether ETHUSD, which saw increases of about 2.3% and 4% respectively.

The decision of the Federal Reserve to maintain interest rates between 4.25%-4.50% on May 7 has strengthened the appeal of cryptocurrencies. Jerome Powell, the Fed Chair, in his remarks post-meeting, underscored the risk of stagflation — a combination of slow economic growth and persistent inflation — partially triggered by Trump’s tariff policies.

Bitcoin, often referred to as “digital gold,” stands as a store of value in such circumstances. As investors grow wary of inflation impacting fiat currencies, they are increasingly turning towards Bitcoin, similar to the 2020 monetary easing period that triggered a crypto rally.

Expectations of the US-UK trade deal are also fuelling market positivity. The Trump administration has expressed a favourable stance towards cryptocurrencies, and an imminent trade pact with the UK has been hinted at. Trump stated on May 7 via a Truth Social post that a “major trade deal” with a “big, highly respected, country” is due for announcement on May 8. The New York Times has identified the country as the UK, according to three informed sources.

The potential US-UK deal could signify a reduction in global trade tensions, thereby stimulating risk appetite across markets, including cryptocurrencies. Following this announcement, Bitcoin experienced a 4% rise, continuing a week-long rally as macroeconomic conditions improve.

From a technical standpoint, the combined market cap of all cryptocurrencies, represented by TOTAL, reflects a rebound that began at the $2.4 trillion support level. It has since rallied 30% to cross the $3 trillion mark for the first time in two months. It’s noteworthy that the 200-day simple moving average (SMA) is currently at the same level.

The last time the market cap exceeded $3 trillion was on March 3 before a tariff-induced sell-off brought it down to $2.27 trillion on April 7. The TOTAL market cap, now at $3.03 trillion, is looking to break the resistance zone between $3.1 trillion and $3.25 trillion. If this happens, it would indicate the bulls’ ability to maintain the uptrend, with the all-time highs above $3.69 trillion in their sights.

The daily RSI has steadily climbed from oversold conditions at 30 on April 7 to the current level of 68, suggesting that the bullish momentum is gaining pace.

This article does not offer investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The post Decoding the Rise in Cryptocurrency Market Today: Key Factors at Play appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Presently, the memecoin is trading below the crucial price levels of $0.4039 and $0.3157, according to TradingView. Despite being below the 50 and 200 moving averages, DOGE is currently oversold with a Relative Strength Index of 28.

Depending on the market sentiment, DOGE might reach lower price levels if the current price level is not sustained. The subsequent support levels are $0.2165 and $0.1759. Dogecoin’s price decline is in sync with a wider crypto market slump caused by macroeconomic worries following the introduction of new tariff policies by Donald Trump. Due to the latest events, the market has lost over 6% in capitalization, with meme coins, known for their extreme volatility, being hit the hardest. Dogecoin is presently leading the losses.

Adding fuel to the bearish sentiment, large DOGE holders sold approximately 270 million tokens within a 24-hour period, as stated by renowned crypto market analyst Ali Martinez.

The price of Dogecoin has often been swayed by Elon Musk’s social media activities. His increased involvement in the Trump administration introduces another element of political uncertainty. Musk’s team has recently been granted access to the Treasury’s payment system, raising concerns about potential misuse of sensitive financial data.

Despite the Treasury Department’s reassurances that no payments have been blocked, the wider effect on financial markets is yet to be determined. While Dogecoin’s recent drop has impacted investor confidence, future movements will likely hinge on the broader market conditions and the return of buying pressure. If whales continue to offload, and technical indicators stay bearish, further downside could be in store for the meme coin. However, DOGE’s history of bouncing back after severe drops suggests there may be potential for recovery.

The post Dogecoin Dips 13% Amidst Gloomy Market Mood: Key Details appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.