The cryptocurrency market experienced a broad sell-off on May 8, 2026. Reports of a US-Iran military exchange in the Strait of Hormuz triggered the downturn. Bitcoin briefly dropped below the $80,000 threshold. Market liquidations exceeded $344 million as sentiment shifted from greed to fear.
US spot Bitcoin ETFs recorded net outflows of approximately $268.46 million on May 7. BlackRock’s IBIT fund accounted for $98.02 million of these withdrawals. This reversal followed a week where the fund helped capture over $1 billion in total inflows.