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The cryptocurrency market has lost its upward momentum amid geopolitical tensions surrounding the US and Iran, outflows from Bitcoin (BTC) spot ETFs, and pressure from slowing institutional demand. Dogecoin (DOGE) and Cardano (ADA) led the weakness in major altcoins, and Bitcoin once again fell below its key support level of $80,000, shaking overall market investor sentiment.
According to Coingape on May 8 (local time), Bitcoin fell below the $80,000 mark after failing to break through the $82,800 resistance zone. Bitcoin dropped below $80,300, which was cited as the average purchase price for major whales in recent trades, and fell by 0.78% in the last 24 hours.
Bitcoin spot ETF fund flows also acted as a burden. On May 8, Bitcoin spot ETFs saw a net outflow of $277.5 million. Major funds managed by Fidelity and BlackRock led the outflows, reportedly breaking a five-consecutive-day inflow streak.
The overall cryptocurrency market also could not avoid weakness. Coingape reported that the total cryptocurrency market fell by 0.84%, with its market capitalization declining to approximately $2.66 trillion. The article also included observations that if ETF outflows continue, Bitcoin could retest the support range of $78,500 to $76,000 in the short term.
Geopolitical variables also heightened market caution. US President Donald Trump stated that the ceasefire agreement between the US and Iran was still holding despite renewed military tensions. However, Trump said, “If Iran does not quickly finalize the peace agreement, there will be stronger measures.”
Trump said in remarks reported by CBS News, “If there is no ceasefire, you won’t even need to know. You’ll just see one big flash coming out of Iran.” Coingape reported that the US military reportedly attacked Iranian military facilities near the Strait of Hormuz, and Iranian authorities claimed that several civilian areas were also targeted in the airstrikes.
Instability in the Middle East also expanded. The UAE confirmed additional incidents related to Iran, and at least 12 people were reportedly killed in Israeli military operations in Lebanon. Expectations for a potential agreement maintained risk appetite in some global stock markets, but in the cryptocurrency market, investors showed a trend of reducing exposure to volatile assets.
Altcoin weakness was more pronounced. Dogecoin fell by 3.62%, recording a significant drop among memecoins and major assets. Coingape reported that Dogecoin could attempt a rebound if it holds the $0.1050 support level, but if it falls below that level, it could decline further to around $0.1020.
Cardano also declined, following Bitcoin's weakness. Cardano fell by 1.31% in the last 24 hours, and maintaining the $0.26 support level was presented as a key variable for short-term trends. If this support is maintained, it could retest the $0.27 range, but if it breaks, a bearish trend could continue down to around $0.255.
Other major cryptocurrencies, including XRP and Solana (SOL), also recorded losses in recent trades. Coingape reported that the overall cryptocurrency market rally halted due to a combination of Bitcoin's failure to break resistance, net ETF outflows, and escalating tensions between the US and Iran.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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