The Cryptocurrency Market Is on the Rise Today, with the Total Market Capitalization Increasing by About 3.26%

The cryptocurrency market is up on Monday, with the total market capitalization increasing by about 3.26% in the last 24 hours to reach $3.09 trillion by 08:45 ET.

Bitcoin (BTC) and Ethereum (ETH) price today gains were around 2.3% and 6% respectively.

What Caused Crypto Market Gains Today?

The Federal Reserve’s decision to keep interest rates fixed in the range of 4.25%-4.50% at the previous meeting on Tuesday further increased the appeal of crypto assets.

As the central bank signaled its intent to pause the tightening cycle, there was a greater anticipation of a rate cut later this year.

However, Jerome Powell, Chair of the Federal Reserve, highlighted in his post-meeting statement the increasing risk of stagflation—slow economic growth with persistent inflation—which could be partly attributed to Trump-era tariff policies.

“It looks like the Fed expects inflation and unemployment to both rise,” noted The Kobeissi Letter on X, adding:

“They refrained from cutting rates to see which aspect of their dual mandate would surge first. Uncertainty is still high.”

This scenario would further elevate Bitcoin’s status as a store of value, often described as “digital gold.”

Investors concerned about inflationary pressures eroding the value of fiat currencies would likely turn to Bitcoin as a hedge, similar to the monetary easing period of 2020, which saw a significant surge in the crypto market.

“The Fed is worried about stagflation. We think it will be favorable for Bitcoin,” stated Zach Pandl, Head of Research at Grayscale, in a post on X on Tuesday following the Fed’s decision and press conference.

Anticipation of US-UK Trade Deal Fuels Market Optimism

President Donald Trump’s administration has signaled a pro-crypto stance, and reports suggest that a trade deal between the US and the UK is likely to be announced soon.

In a post on Truth Social on Tuesday, Trump mentioned that there would be a “big trade deal” with a “big and highly respected” country to be announced on Wednesday.

The New York Times, however, reports that the country is the UK, according to information from three sources familiar with the matter.

An agreement between the US and the UK will mark a reduction in global trade tensions, ultimately boosting risk appetite across various markets, including cryptocurrencies.

Following the announcement, Bitcoin prices rose by up to 4%, continuing a week-long rally amid improving macroeconomic conditions.

Other major crypto assets have also followed Bitcoin’s lead, signaling a shift in market sentiment, which is evident in the Crypto Fear & Greed index returning to the “greed” zone.

Crypto Market Technical Rebound

From a technical perspective, today’s rise in TOTAL, the combined market capitalization of all cryptocurrencies, is part of a rebound that started from the $2.4 trillion support level.

Since then, the market has surged 30% and is now trading above $3 trillion for the first time in two months. Notably, this area also coincides with the position of the 200-day simple moving average (SMA).

The last time the market capitalization was above $3 trillion was on March 3, before the tariff-induced sell-off brought it down to $2.27 trillion on April 7.

Currently, TOTAL’s market capitalization stands at around $3.03 trillion as it tries to breakthrough the resistance zone between $3.1 trillion and $3.25 trillion.

If successful, it would be a signal that the bulls are able to sustain the upward trend, setting a target towards the previous record high above $3.69 trillion.

Meanwhile, the daily RSI indicator has been rising steadily from oversold conditions at 30 on April 7 to 68 at present, indicating a strengthening bullish momentum.