The cryptocurrency market rose by 2.5% in the past 24 hours as of May 8th, breaking through a market capitalization of $3.06 trillion (approximately 4,472 trillion won). This is the highest level in about 8 weeks, with Bitcoin (BTC) and Ethereum (ETH) leading the market rise by more than 2.3% and 4% respectively.
This rise is analyzed as a result of the US Federal Reserve's decision to hold interest rates steady and the 'stagflation' concerns amid high inflation, which has highlighted Bitcoin as a 'store of value'. This means investors are re-evaluating cryptocurrencies as risk hedging assets in preparation for expanding uncertainty.
Additionally, expectations of a free trade agreement (FTA) between the US and the UK and technical rebound signals added momentum to the rise. Some analysts explained that "automatic buy signals were detected after breaking through the technical resistance line, which led to market-wide buying sentiment".
The recent pro-cryptocurrency stance of former President Donald Trump, which has raised policy expectations across the market, is also evaluated as positively affecting investment sentiment. The former president had previously stated that he would support individuals' rights to own Bitcoin.
Experts noted that "the cryptocurrency market is showing a complex rally with macroeconomic indicators, policy expectations, and psychological support lines aligning," while also warning that "the possibility of a short-term correction after a rapid rise should be kept in mind".
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