Crypto slides as S&P 500 draws funds; Bitcoin rejected at $82.8K

Crypto markets slipped 0.59% as investors rotated capital into U.S. equities after the S&P 500 closed at a record high. Bitcoin was rejected at $82,838 and the total crypto market capitalization fell to $2.65 trillion, a roughly $15.8 billion decline from the prior session.

The S&P 500’s advance was led by technology names as chipmaker AMD reported strong earnings and oil prices eased on hopes for a diplomatic agreement in the Middle East. That rally drew money toward AI-focused stocks and away from some digital assets.

Total market value for crypto moved from about $2.66 trillion to $2.65 trillion after a recent peak near $2.72 trillion. Market analysts identify $2.60 trillion as an immediate test for buyers, corresponding to a 0.236 Fibonacci retracement. A break below $2.60 trillion would open targets near $2.53 trillion and $2.47 trillion at the 0.382 and 0.5 retracement levels.

Bitcoin corrected after the rejection at $82,838. Technical readings on the daily chart showed a hidden bearish divergence between Jan. 5 and May 6, when price formed a lower high while the Relative Strength Index made a higher high. Traders interpret that pattern as favoring continuation of the broader downtrend. Bitcoin was trading near $80,925, down about 0.6% on the day. Immediate resistance sits at $82,820. On the downside, chart-based supports are $77,423 (0.236 Fibonacci), $74,084 (0.382), $71,385 (0.5) and $68,686 (0.618). A daily close above $82,820 would invalidate the bearish divergence and open the path higher.

Among altcoins, Pudgy Penguins fell roughly 6% to $0.0104. Price action since a recent peak at $0.0118 resembles a pole-and-flag formation: the pole rose from $0.0060 to $0.0118 and a flag is consolidating with declining sell volume. A clean move above $0.0113 would confirm a breakout, while downside support levels to watch are $0.0096 and $0.0082.

Institutional and infrastructure activity continued alongside the market moves. Ripple, JPMorgan, Mastercard and Ondo Finance completed a cross-border tokenized U.S. Treasury redemption settled in near real time, routing the OUSG redemption through the XRP Ledger, Mastercard’s Multi-Token Network and JPMorgan’s Kinexys platform.

On policy and custody, White House digital asset official Patrick Witt announced the U.S. will publish new details on a Strategic Bitcoin Reserve “in the coming weeks,” citing custody concerns after a $46 million exploit of a U.S. Marshals Service wallet. In market access news, South Korea’s largest crypto exchange, Upbit, plans to list a B3/KRW trading pair on May 7 at 13:45 local time; B3 is a layer-3 gaming chain built on Base using the OP Stack.

Market participants noted a pattern of alternating days that favor equities or crypto as flows shift in response to earnings, macro signals and on-chain developments. Near-term direction will depend on whether buyers hold the $2.60 trillion level and whether Bitcoin can reclaim and sustain levels above $82,820.