CoinDesk
Bitcoin slipped below the $80,000 floor that had held for most of the past week, trading around $79,200 in Asian hours on Thursday and down 2.3% over 24 hours, while Solana led the major-alt cohort lower with a 5.6% drop to roughly $90. Ether fell 2.1% to $2,250, BNB shed 1.6% to $660, and XRP slipped 1.7% to $1.43 — Dogecoin at $0.1126 was the only major posting a 24-hour gain. The crypto pullback coincided with choppy Asian equities around the Trump-Xi summit in Beijing, the first visit by a sitting U.S. president to China in nearly a decade.
Why it matters
The sell pressure had two distinct engines. Wednesday's U.S. producer price index print came in at 1.4% month-over-month against a 0.5% forecast, a day after Tuesday's CPI reading hit 3.8% — the hottest inflation print in almost three years. Back-to-back upside surprises complicate the Federal Reserve's path to easing later this year and remove one of the structural tailwinds crypto has been pricing in. Layered on top, Chinese President Xi Jinping told Donald Trump that mishandling Taiwan could lead to "collision or even clashes," with Beijing's readout appearing to drop before the meeting had even concluded, rattling risk sentiment globally. Mainland Chinese shares fell 1.3% off their highest level since 2021; the offshore yuan extended an 11-day winning streak.
Market impact
The next structural test for bitcoin sits at $78,000, the early-May low before the rally to $82,000. A clean break below puts the late-April capitulation zone back in play; holding the level keeps the structural-buyers case intact into the next macro print and the back end of the Trump-Xi talks. The divergence running through this tape is worth flagging: Cisco jumped 20% in extended trading on a stronger sales outlook, Asian tech touched a record high, and Nasdaq 100 futures were up 0.2% — the AI trade is still bid even as broader risk turns choppy, the same split that's been running for three weeks.
Frequently asked questions
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Why did bitcoin drop below $80,000?
Back-to-back upside U.S. inflation prints — PPI at 1.4% MoM Wednesday and CPI at 3.8% Tuesday — hit crypto alongside renewed geopolitical tension after Xi Jinping warned Trump over Taiwan at their Beijing summit.
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How much did Solana fall and why did it lead losses?
SOL dropped 5.6% to roughly $90, the steepest decline among major altcoins, giving back most of the two-week run that had made it the cohort's standout performer.
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What is the next key support level for bitcoin?
$78,000 — the early-May low before the rally to $82,000. A clean break below would put the late-April capitulation zone back in play.
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How does the inflation data affect the Federal Reserve?
The hot CPI and PPI prints complicate the Fed's path to easing rates later this year, removing one of the structural tailwinds crypto has been pricing in.
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Did all risk assets move together on the news?
No — the divergence was notable. Cisco jumped 20% in extended trading on a strong outlook, Asian tech touched a record high, and Nasdaq 100 futures rose 0.2%, even as mainland Chinese shares fell 1.3% and crypto sold off broadly.
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