Why Did the Virtual Asset Market Rise Today?

▲ Bitcoin, Cryptocurrency ©

The virtual asset market is forming a strong rebound momentum, rising to a market capitalization of $2.67 trillion, driven by the dual tailwinds of robust macroeconomic indicators and expectations of regulatory easing.

According to CoinMarketCap, a cryptocurrency market data aggregator, on May 8 (local time), the total virtual asset market capitalization recorded a 0.93% increase over the past 24 hours, reaching $2.67 trillion. This comes as a result of a high 58% correlation with the S&P 500 index and the Nasdaq index, which hit all-time highs on the same day. Robust data from the U.S. labor market, indicating the addition of 115,000 jobs in April, dispelled market growth concerns and drove investor sentiment.

On the regulatory front, optimism is spreading as Paul Atkins, former Chairman of the U.S. Securities and Exchange Commission (SEC), expressed support for on-chain finance rules. Following the asset classification framework recently co-developed by the SEC and the U.S. Commodity Futures Trading Commission (CFTC), the passage of the CLARITY Act, a U.S. cryptocurrency market structure bill currently pending in the Senate, is drawing attention as a key variable that will solidify the future regulatory framework.

The inflow of institutional capital is also strong. The assets under management (AUM) of Bitcoin (BTC) spot exchange-traded funds (ETFs) have soared to $108.73 billion, demonstrating continuous institutional demand. Market experts are noting that capital is not merely tied to Bitcoin's price but is circulating into high-beta narratives such as Real World Assets (RWA) and privacy tokens.

Among individual assets, ONDO surged by 22.56% on news of a pilot program for tokenized government bonds among institutions, and Starknet (STRK) jumped by 24.51% thanks to a privacy-focused upgrade. The Altcoin Season Index also rose to 43, indicating that investors' risk appetite for altcoins is gradually strengthening.

The short-term outlook hinges on whether Bitcoin can defend the $79,000 to $80,000 range. While the 7-day Relative Strength Index (RSI) currently stands at 73.93, entering a short-term overbought zone, which may lead to a temporary pause, the media predicts that if the $80,000 level is stably maintained, further upward movement towards the $2.78 trillion resistance level is possible.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*