We saw the power of the cryptocurrency market explode in unprecedented ways. On May 8, at peak capitalization it reached $3.09 trillion, up a whopping 3.26% in a mere 24 hours. This increase brings us back up to levels we haven’t seen since March 3. It comes on the heels of marketplace rebound from a tumble to $2.27 trillion on April 7, due to a majority tariff-fueled sell-off. Bitcoin quickly led the charge, climbing as much as 4% and extending a week-long rally fueled by better macroeconomic conditions. Ethereum followed suit with even larger gains, up just under 6%.

You can see that the market sentiment is turning, and this reclaim indicates that turn. The Crypto Fear & Greed index has risen all the way back up to the “greed” level. The total market capitalization of all cryptocurrencies – TOTAL – has bounced off the $2.4 trillion support level. This bounce adds to the good news trend in the market. This resurgence comes with a record-breaking 30% increase. Because of this, the entire crypto market has risen over the $3 trillion threshold for the first time in two months.

Bitcoin's Dominance and Market Sentiment

Bitcoin’s amazing performance over the last few months has made it clear that, for better or worse, bitcoin is the driver of this market. Investors are quickly adopting Bitcoin as a superior hedge to the inflationary fiat onslaught that continues to decimate traders and investors alike. Fiat currencies are losing their value fast. The recent rally in Bitcoin prices has been closely followed by other major crypto assets, indicating a broader positive sentiment across the market.

Many specialists predict that Bitcoin will completely take over the market as early as this year. Its demand as a perceived store of value and increasing acceptance among institutional investors are largely bolstering this growth. This newfound acceptance and acknowledgment of Bitcoin’s potential has only added to the rocket-like rise in Bitcoin price, and the subsequent confidence in the entire market.

Overall, market sentiment is changing in a dramatic way. The Crypto Fear & Greed index just crossed into the “greed” territory. Investors are starting to feel more optimistic about future recoveries in the cryptocurrency markets. This increasing optimism has led to a surge in purchasing activity and prices are becoming unhinged.

Macroeconomic Factors and Political Influence

What started pumping all the water into this bull market aquarium were three big macroeconomic and political developments. A US-UK trade agreement would further improve risk appetite across a number of markets. This has contributed to an unprecedented increase in demand for crypto assets.

Additionally, recent signals from US President Donald Trump’s administration indicate a pronounced pro-crypto attitude. This belief about a change in regulatory sentiment has fueled investor confidence, adding rocket fuel to the market’s surge.

"We think it will be favorable for Bitcoin." - Zach Pandl, head of research at Grayscale

Technical Analysis and Market Outlook

TOTAL’s daily Relative Strength Index (RSI) has been trending higher. It had a parabolic rise from an extremely oversold reading of 30 on April 7 to its bullishly extreme current reading of 68. This is a bullish sign that shows the buying momentum is strong and that the market might still have much more room to continue to grow.

200-day simple moving average (SMA) for TOTAL is currently hovering near the $3.1 trillion to $3.25 trillion resistance zone. This would seem to pose a significant risk to any further bullish momentum in the market. A break above this resistance level would likely signal a further bullish trend, while failure to do so could result in a period of consolidation or correction.