Key takeaways
- Bitcoin fell below $80,000 on May 7, erasing weekly gains after hitting a high of $82,833.
- The volatility triggered $270 million in liquidations and pushed the crypto market cap to $2.74 trillion.
- Concerns are growing that President Trump could turn to a hot war as Tehran rejects the latest US proposal.
The factor of the peace agreement with Iran
On May 7, bitcoin The price reversed, falling below $80,000 to effectively erase the gains made since Monday. As the daily chart shows, the high cryptocurrency— which hit a multi-month high of $82,833 about 24 hours earlier — had been under pressure from bears since Wednesday afternoon.
After losing $1,000 on a slow descent from noon to midnight, bitcoin found temporary support at $80,700. Although a pre-dawn rally took the price to $81,600, the momentum proved unsustainable. The ensuing sell-off was more aggressive, forcing the asset to fall to an intraday low of $79,500. At 1 p.m. EDT, bitcoin has regained some ground, currently hovering just below the $80,000 mark.
BitcoinThe nearly 2% drop took its market capitalization below $1.6 trillion, a marked drop from Wednesday’s intraday peak of around $1.66 trillion. The fall helped pull the crypto the economy market capitalization to $2.74 trillion, up from just over $2.8 trillion.
THE cryptocurrency The market decline, which mirrored that of Wall Street, coincided with reports that Iran had rejected the Trump administration’s proposal to end the war. According to an article published on
Iran’s rejection of the US proposal neutralized the optimism sparked by previous Axios reports that a deal was imminent. There are growing concerns that a prolonged diplomatic standoff will embolden Washington hawks, potentially sidelining proponents of diplomacy and pushing President Trump toward direct military confrontation.
Despite the fall, bitcoin was at the time of writing still up nearly 5% month to date and over 15% over a 30-day period. At the same time, bitcoin’s volatility over a 24-hour period caused $91 million in overleveraged long positions to disappear, compared to $12 million in short positions. Overall, the crypto economy saw nearly $270 million in long bets liquidated, compared to $90 million in short bets.
