The price of the leading cryptocurrency fell below $80,000 amid U.S. strikes on targets in Iran. This led to a brief spike in oil prices above $100 per barrel.
As of this writing, Bitcoin is trading at $80,131 (-0.8% over the past day).
This price movement triggered liquidations in the futures market, with traders losing over $289.68 million.
The Fear and Greed Index has dropped to 38 points, indicating a bearish sentiment in the market.
It's Not So Clear-Cut
Unrealized profits for Bitcoin traders have reached 18%—the highest since June 2025, according to analysts at CryptoQuant.
Bitcoin traders are sitting on their highest unrealized profits since June 2025.
— CryptoQuant.com (@cryptoquant_com) May 7, 2026
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
Since early April, the price of Bitcoin has risen by 37%, reaching a three-month high. Experts attribute this surge to a recovery from undervaluation, increased demand for perpetual futures, and reduced macroeconomic pressure.
This price increase has led to a wave of profit-taking. On May 4, the daily volume of realized profits reached 14,600 BTC—the highest in five months. For the first time since late 2025, investors recorded a net profit over the past 30 days. In contrast, net losses in February and March 2026 amounted to 398,000 BTC.
Historically high levels of unrealized profits often precede corrections, as selling pressure tends to increase at such levels. However, analysts do not currently see signs of an immediate crash.
Demand for futures remains stable, and the influx of coins onto exchanges is not increasing. These factors may support Bitcoin's price in the short term, even amid active selling.
Funds Favor Bitcoin
On-chain analyst MorenoDV has noted a capital influx into Bitcoin funds amid outflows from Ethereum-based products. Since early February, the balances of these instruments have risen from 1.278 million BTC to 1.37 million BTC—a net influx of over 92,000 BTC (7.2%).
BTC Accumulation Accelerates While ETH Struggles to Regain Institutional Conviction
— CryptoQuant.com (@cryptoquant_com) May 8, 2026
“But while Bitcoin appears to have regained institutional confidence relatively quickly, Ethereum still shows signs of hesitation.” – By @MorenoDV_ pic.twitter.com/o1OtAZFLlA
During the same period, the volume of Ethereum held by funds decreased from 5.93 million ETH to 5.8 million ETH, a drop of 127,000 ETH (2.1%).
According to the analyst, prices began to recover after ownership volumes in investment products stabilized. MorenoDV believes that the capital of major players is not merely reacting to the market but is shaping its structure.
The differing behaviors of investors reflect their varying perceptions of the assets. Bitcoin has solidified its status as a "reserve" asset due to its high liquidity and the success of spot ETFs. In contrast, Ethereum funds are still viewed as riskier assets: during uncertain times, managers tend to reduce their allocation to Ethereum first, favoring Bitcoin instead.
Signals of Growth
Bitcoin investors have returned to profitability after a prolonged period of losses, as noted by analyst Darkfost.
On a weekly 7 DMA basis, the profit/loss ratio has now moved back into positive territory, currently estimated at 2.9.
— Darkfost (@Darkfost_Coc) May 8, 2026
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
The seven-day moving average of the Profit/Loss ratio has risen to 2.9—realized profits from Bitcoin are now more than double the losses. This situation has not been seen since January of this year.
Darkfost views this trend as moderate yet constructive: the return to profitability 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 may not absorb such a volume of sales, leading to a phase of coin distribution and a price drop. Darkfost considers the current values to be a positive signal for growth.
It’s worth noting that in May, analysts at JPMorgan reported a capital shift from gold to Bitcoin following the escalation of conflict in the Middle East.