Solana drops 5%, bitcoin below $80,000 as Xi warns Trump on Taiwan conflict
Bitcoin dropped below $80,000 to $79,200 as geopolitical tensions flared during Trump-Xi talks on Taiwan, alongside back-to-back inflation surprises. Solana led losses with a 5.6% decline to $90, while Ether fell 2.1%. The sell-off undercuts structural crypto tailwinds from expected Fed rate cuts. Traders watch $78,000 as the next critical support level for Bitcoin's recovery trajectory.
Key takeaways
- 1Bitcoin fell below $80,000 to $79,200 amid inflation surprises and Xi's Taiwan warning to Trump during their Beijing summit.
- 2Solana led crypto losses with 5.6% decline to $90, while Ether dropped 2.1% to $2,250 over 24 hours.
- 3Back-to-back inflation shocks (CPI 3.8%, PPI 1.4% MoM) complicate Fed rate-cut expectations, removing a key tailwind for crypto.
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Why it matters
Geopolitical tensions and hawkish inflation data are pressuring crypto markets and delaying anticipated Fed easing that retail investors were counting on for portfolio gains. For Indian investors, this signals increased global uncertainty affecting crypto valuations and suggests focusing on support levels like $78,000 for Bitcoin before considering fresh positions.
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