Bitcoin crashes below $80,000, due to virus?...$108.58 million long positions forcibly liquidated

▲ 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% decrease from the peak recorded on May 6. This sharp decline coincided with news of the Hantavirus spread on the MV Hondius cruise ship and the initiation of contact tracing 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 is the strongest correction phase experienced after a 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 large-scale liquidations of leveraged long-position investors, 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 that its Q1 2026 revenue plummeted by 31% year-over-year also exacerbated market stress, coupled with a slowdown in derivatives market trading.

Analyzing Bitcoin's technical trend, the current most critical recovery benchmark is the $82,799 level. Only by decisively breaking through this price can a full-fledged recovery after this correction be discussed. 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 a watershed moment distinguishing between a mere correction and a trend breakdown.

Monero (XMR), a leading privacy coin, fell 6% from the previous day to $388 after failing to break out of a cup-and-handle pattern. Monero appeared to break above the pattern's high but then reversed, forming a classic bull trap, plummeting 11.44% from its May 6 peak. 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.

Amidst a general market sell-off, Chainlink (LINK) whales accumulated 32.93 million LINK over the past month, utilizing the downturn as a buying opportunity. Santiment data suggests that some large investors are opting for rotational buying into specific sectors rather than 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. Whether the $2.6 trillion level is defended will be key to maintaining a bullish outlook.

*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.*