Bitcoin Smashes $97.5K as Fed Policy Fuels Altcoin Rally—SOL, Alpaca, and SUI Staking Markets Surge
FOMC-induced liquidity pumps crypto markets again—because why wouldn’t Wall Street’s monetary heroin trickle down to digital assets?
Solana leads altcoin charge with 12% daily gain as traders rotate into staking plays. Meanwhile, ’Alpaca Finance’ yields hit 28% APY—because nothing screams sustainable like leveraged farming during a macro rally.
SUI’s validator queue overflows with new delegators chasing that sweet, sweet inflationary yield. Because in crypto, we don’t just HODL—we print fake internet money to buy more fake internet money.
BTC dominance dips to 54% as risk appetite returns. Traders now pricing in six more months of ’transitory’ inflation and Fed pivot hopes. Cue the institutional research notes about ’digital gold 2.0’ any minute now.
Bitcoin market updates:
- Bitcoin price rose as high as $97,500 on Monday, amid bullish reactions US Federal Reserve rate pause and China’ signalling intent to hold tariff talks with the US.
Bitcoin ETFs flows, May 7, 2025 | Source: Farside
Farside data shows that after $85 million outflows on Tuesday, US Bitcoin ETF reacted positively to the rate decision, pulling over $105 million inflows before the close of trading on Wednesday.
Chart of the day: US Fed holds rate paused at 4.5% boosting global markets sentiment
On Wednesday, the US Federal Reserve kept the funds rate at 4.25% - 4.50% for a third consecutive meeting.
While the pause matched market expectations, Fed Chair Jerome Powell expressed concerns that President Trump’s tariffs could drive up inflation, unemployment and slow economic growth.
US Fed Announces third consecutive rate pause | TradingEconomics
With the Fed acknowledging growing the risks of higher unemployment, investors are now pricing in the prospects of imminent rate cuts in Q2.
This scenario could see more capital Flow towards risk assets including BTC as the week progresses.
Altcoin markets: Crypto traders scamper towards staking markets on Solana, SUI and Alpaca Finance
As speculations around interest yield on USD-denominated assets intensify, altcoin markets saw a sharp rotation into staking-focused tokens, led by Solana, SUI, and Alpaca Finance
As seen in the chart below, SUI has attracted over $1.7 billion in 24-hour trading volume outpacing higher-ranked assets including DOGE, BNB and Cardano.
Crypto market performance, May 8, 2025 | Source: Coingecko
Solana also posted mild gains, retesting the $150 price level while surpassing third-placed XRP $5 billion trading volume.
Meanwhile Alpaca Finance appeared on Coingecko’s list of top gainers, recording a 58% price jump on the day.
Zooming out, the global crypto market cap held steady at $3.1 trillion, with 24-hour volume at $86.3 billion. Ethereum edged down 0.3% to $1815.52.
Among other major tokens, BNB retraced 1% towards $600 after Standard Chartered’s bullish prediction initially drove it to a weekly timeframe high of $607.
Cardano price also pulled back 1.3% to hit $0.67 after failing the breakout test at $0.70.
With elevated trading volumes and Bitcoin price anchoring the market above the $3.1 trillion market capitalization, the pull backs seen in top altcoins could be interpreted as consolidation for the next leg-up.
Ethereum activates Pectra upgrade with smart wallet support and staking improvements
Ethereum has successfully launched the Pectra upgrade on its mainnet, marking the network’s most significant technical update since the Merge and Dencun.
Pectra is live on Ethereum mainnet!
- Smart account wallet UX features now active
- L2 scaling data storage blobs increased by 2x
- Validator UX improvements live
Community members will continue to monitor for any issues over the next 24 hours.
The activation occurred at epoch 364032 on May 7, 2025, shortly after 6:00 a.m. ET.
The upgrade introduces multiple Ethereum Improvement Proposals (EIPs) focused on validator functionality, wallet usability, and Layer 2 scalability, including account abstraction and increased gas efficiency.
Crypto.com expands U.S. footprint with new Washington, D.C. regional office
Crypto.com has announced plans to open a new North America regional office in Washington, D.C., located NEAR the White House.
The move is intended to strengthen the company’s engagement with US policymakers and regulators as it expands its presence in the American market.
The Washington office will serve as a hub for Crypto.com’s public and government affairs activities, reflecting the company’s strategic focus on navigating the evolving regulatory environment in the US.
