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▲ Cryptocurrency decline/ChatGPT generated image
The cryptocurrency market lost its upward momentum amid geopolitical tensions between 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 again fell below the key $80,000 support level, shaking overall market 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. In recent trading, Bitcoin dropped below $80,300, which was cited as the average purchase price for major whales, and declined by 0.78% over the past 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, which reportedly broke a five-consecutive-day inflow streak.
The overall cryptocurrency market could not avoid weakness. Coingape reported that the entire cryptocurrency market fell by 0.84%, with its market value dropping 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. U.S. President Donald Trump stated that a ceasefire agreement between the U.S. and Iran was still being maintained even after military tensions between the two countries escalated again. However, Trump said, “If Iran does not quickly finalize a peace agreement, there will be stronger measures.”
In remarks reported by CBS News, Trump said, “If there is no ceasefire, you won't even need to know. You'll just see one huge flash coming out of Iran.” Coingape reported that the U.S. 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. While expectations for a potential agreement maintained risk appetite in some global stock markets, investors in the cryptocurrency market showed a trend of reducing exposure to volatile assets.
Altcoin weakness was even more pronounced. Dogecoin fell by 3.62%, recording a significant drop among memecoins and major assets. Coingape reported that if Dogecoin maintains the $0.1050 support level, a rebound attempt is possible, but if it falls below that level, it could drop further to around $0.1020.
Cardano also declined, following Bitcoin's weakness. Cardano fell by 1.31% over the past 24 hours, and whether it maintains the $0.26 support level was presented as a key variable for short-term trends. Analysis suggested that if this support level is maintained, it could retest the $0.27 range, but if it breaks, the weakness could continue to around $0.255.
Other major cryptocurrencies, including XRP and Solana (SOL), also recorded losses in recent trading. 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 U.S. and Iran.
*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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