Bitcoin Tests Support at $80,000 Amid Geopolitical Tensions

Bitcoin fell below $80,000 amid US-Iran tensions, triggering market reactions.

The price of the leading cryptocurrency fell below $80,000 amid US strikes on targets in Iran. These events briefly pushed oil prices above $100 per barrel.

At the time of writing, digital gold is trading at $80,131, down 0.8% over the past 24 hours.

The price movement triggered liquidations in the futures market, with traders losing over $289.68 million.

The Fear and Greed Index dropped to 38 points, indicating a shift to bearish market sentiment.

A Complex Picture

Unrealized profits for bitcoin traders reached 18%, the highest since June 2025, according to CryptoQuant analysts.

Bitcoin traders are sitting on their highest unrealized profits since June 2025.

Historically, these levels increase correction risk as traders become more incentivized to lock in gains.

Profit-taking pressure tends to accelerate as unrealized margins rise. pic.twitter.com/Ami5ZjOwSv

— CryptoQuant.com (@cryptoquant_com) May 7, 2026

Since early April, the price of the leading cryptocurrency has risen by 37%, reaching a three-month high. Experts attributed the surge to a recovery from undervaluation, increased demand for perpetual futures, and reduced macroeconomic pressure.

The price rise triggered a wave of profit-taking. On May 4, the daily realized profit volume reached 14,600 BTC, the highest in five months. For the first time since late 2025, investors achieved a net profit over 30 days. In comparison, net market losses reached 398,000 BTC in February and March 2026.

Historically high levels of unrealized profits precede corrections, as such values increase selling pressure. However, analysts currently see no signs of an imminent crash.

Demand for futures remains stable, and the inflow of coins to exchanges is not increasing. These factors may support the bitcoin price in the short term, even amid active selling.

Funds Favour Bitcoin

On-chain analyst MorenoDV observed a capital inflow into bitcoin funds amid outflows from Ethereum-based products. Since early February, balances of these instruments have grown from 1.278 million BTC to 1.37 million BTC, a net inflow of over 92,000 BTC (7.2%).

BTC Accumulation Accelerates While ETH Struggles to Regain Institutional Conviction

“But while Bitcoin appears to have regained institutional confidence relatively quickly, Ethereum still shows signs of hesitation.” – By @MorenoDV_ pic.twitter.com/o1OtAZFLlA

— CryptoQuant.com (@cryptoquant_com) May 8, 2026

During the same period, the volume of Ethereum held by funds decreased from 5.93 million ETH to 5.8 million ETH, a reduction of 127,000 ETH (2.1%).

According to the analyst, prices began to recover after holdings in investment products stabilized. MorenoDV believes that the capital of large players not only reacts to the market but also shapes its structure.

The difference in investor behavior reflects varying perceptions of assets. Bitcoin has strengthened its status as a “reserve” instrument due to high liquidity and the success of spot ETFs. Ethereum is still considered a riskier asset by funds: in times of uncertainty, managers reduce its share first, preferring bitcoin.

A Signal for Growth

Bitcoin investors have returned to profitability after a prolonged period of losses, noted analyst Darkfost.

On a weekly 7 DMA basis, the profit/loss ratio has now moved back into positive territory, currently estimated at 2.9.
This means that realized profits on BTC are now more than twice as large as realized losses.

That had not been the case since January, as losses had largely… pic.twitter.com/K804wjGHyN

— Darkfost (@Darkfost_Coc) May 8, 2026

The seven-day moving average Profit/Loss ratio rose to 2.9, with realized bitcoin profits more than double the losses. This situation had not been observed since January of this year.

Darkfost views the trend as moderate but constructive: the return of profits restores investor confidence and leads to market stabilization. A healthy balance is one where profit-taking does not reach extreme levels.

The analyst warned that if the Profit/Loss ratio exceeds 20, the market will not be able to absorb such a volume of sales, leading to a phase of coin distribution and a price drop. Current values are seen by Darkfost as a positive signal for growth.

In May, analysts at JPMorgan reported a capital shift from gold to bitcoin following the escalation of the Middle East conflict.