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▲ Bitcoin (BTC) price drop
Bitcoin (BTC) has sharply fallen below the psychological support level of $80,000, due to a combination of major negative factors: the fear of a new infectious disease sweeping the globe and a contraction in artificial intelligence infrastructure investment.
According to a report by BeInCrypto on May 8 (local time), the total market capitalization of virtual assets recorded $2.62 trillion, a 4.14% drop from its high on May 6. This sharp decline coincided with news of a hantavirus outbreak on the MV Hondius cruise ship and the start of tracking investigations by global health authorities. Furthermore, news of OpenAI's $18 billion chip funding difficulties shook the AI infrastructure market, severely dampening virtual asset investment sentiment. This marks the strongest correction phase since the 22% rally that began in late March.
Bitcoin traded at $79,630, down 1.50% from the previous day, yielding the $80,000 mark. The price drop led to massive liquidations of long position investors using leverage, with Bitcoin long position liquidations reaching $108.58 million according to Coinglass data. This accounted for the largest portion of the total virtual asset market liquidation of $252.78 million. Coinbase's announcement of a 31% year-over-year drop in Q1 2026 revenue also exacerbated market stress, coupled with a slowdown in derivatives market trading.
Analyzing Bitcoin's technical trend, the most crucial recovery benchmark is currently the $82,799 level. A decisive breakthrough of this price is necessary to discuss a full recovery after this correction. If Bitcoin fails to maintain $73,811 on a daily closing basis, downward pressure could extend beyond $68,251 to $59,263. A further 7.15% drop from the current price appears to be the watershed moment distinguishing between a simple correction and a trend breakdown.
Monero (XMR), a leading privacy coin, fell 6% from the previous day to $388 due to a failed cup-and-handle pattern breakout. Monero appeared to break above the pattern's high but soon reversed, forming a classic bull trap and plummeting 11.44% from its May 6 high. To continue its upward trend, it must first reclaim the Fibonacci 23.6% retracement level of $417, and only by surpassing $437 can it challenge highs above $464. If the $387 support level breaks, the upward momentum is expected to weaken sharply.
Amid the overall market sell-off, Chainlink (LINK) whales accumulated 32.93 million LINK over the past month, using the downturn as a buying opportunity. Santiment data suggests that some large investors are opting for rotational buying into specific sectors instead of exiting the market. The primary support level for TOTAL, the total market capitalization of virtual assets, is formed around $2.6 trillion. If this level breaks, $2.53 trillion and $2.47 trillion will become the next defense lines, respectively. Holding the $2.6 trillion mark is key to maintaining a bullish outlook in the future.
*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.*
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