Bitcoin fell below $80,000. The price of Ethereum fell below $2,300. XRP fell to $1.38. The total cryptocurrency market cap fell 1.51% to $2.66 trillion, with more than $90 billion wiped off local highs and $331 million in liquidations recorded in the past 24 hours alone.
Meanwhile, gold rose 4.6% and silver 12.4% in the same period, adding a combined $2.1 trillion to the precious metals’ market value. Money is moving. The question is where to go and why to leave cryptocurrencies.
Three reasons for market decline
Michael Saylor terrified the market
One possible reason could be comments by Michael Saylor, who discussed the potential for strategic Bitcoin sales to cover profits. For a market that treats Saylor’s MicroStrategy as a symbol of institutional condemnation, any suggestion of selling from this camp weighs heavily on sentiment. Bitcoin dominance rose to 60.23% as the market followed Bitcoin’s decline, bringing altcoins down with it.
Concerns about ETF inflows have added to the pressure. Institutional demand via spot Bitcoin ETFs has been the backbone of this cycle’s rally. Any sign that these flows are slowing or reversing tends to amplify selling across the board.
$6.7M DeFi Hack Shakes Confidence
On May 7, DeFi liquidity provider TrustedVolumes was exploited for $6.7 million. The attacker was linked to a previous hack on 1inch, raising concerns about interconnected vulnerabilities across DeFi protocols. Large Ethereum whale wallets moved funds to exchanges soon after, a classic signal of impending selling pressure.
Such security incidents create a sector-wide risk avoidance response. Traders reduce exposure first and ask questions later.
Gold and silver win safe haven trade
The shift to precious metals tells a broader story. As US-Iran tensions remain unresolved and global economic uncertainty increases, institutional capital is flocking to gold and silver rather than cryptocurrencies. The simultaneous infusion of gold and silver for the first time since the conflict began suggests a real flight to safety rather than short-term trade.
What to watch now
The cryptocurrency market is currently testing a major support level at $2.63 trillion. Consistency above this level keeps expectations stable in the near term. A break below opens the door to $2.59 trillion as the next important support.
Two triggers will determine the direction in which you go. First, whether Bitcoin can maintain the psychological level of $80,000. Second, US employment data will be released on May 8, which will shape Fed policy expectations and broader risk appetite across all markets.
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