Crypto markets turned volatile Thursday as Bitcoin dropped below the key $80,000 level while traders reacted to rising geopolitical tensions, hotter-than-expected U.S. inflation data, and the closely watched Trump-Xi summit in Beijing.
Bitcoin briefly fell near $79,200 during Asian trading hours after losing the $80K support zone that had held for most of the week. Moreover, the immediate watch area at this point is the $78,000 region as the next major support level.
At the same time, U.S. President Donald Trump and Chinese President Xi Jinping officially began bilateral talks in Beijing. Xi warned that the world is entering “a transformation not seen in a century” and questioned whether both countries could avoid future conflict over global power dynamics.
Broader crypto sentiment dropped sharply as traders moved into risk-off mode.
Ethereum fell around 2% near $2,250, while XRP slipped toward $1.43. Solana led major losses with a drop of over 5%.
Among meme coins, Dogecoin remained one of the few majors trading slightly positive.
Moreover, crypto market sentiment has shifted back toward fear after two consecutive inflation surprises reduced expectations for Federal Reserve rate cuts later this year.
The latest U.S. producer price index reportedly came in at 1.4% month-over-month versus expectations of 0.5%, while CPI inflation earlier this week rose to 3.8%, the highest reading in nearly three years.
Oil markets also stayed elevated as investors monitored the Trump-Xi summit and rising geopolitical concerns around Taiwan and global trade routes.
Brent crude traded above $105 per barrel, while WTI crude hovered near the mid-$90 range as traders priced in potential supply disruptions and broader geopolitical instability.
Despite weakness across crypto markets, AI-related tech stocks continued outperforming.
NVIDIA remained one of the strongest-performing companies globally and is now worth more than the GDP of every country except the United States and China. Meanwhile, Cisco surged after issuing stronger-than-expected guidance, helping Nasdaq futures remain positive even as crypto markets corrected.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
BonkDAO (Decentralized Autonomous Organization) has reported that it was recently the victim of a $20…
US President Donald Trump has affirmed his support for crypto figures and the industry at…
Arthur Hayes called XRP "absolutely nothing" last week. Charles Hoskinson took a swipe at Ripple…
Bitcoin (BTC) price remained resilient after a recent event that appeared as a bearish catalyst.…
The tokenized real-world asset (RWA) market continues to grow as more Wall Street firms move…
The DOT price has spent months looking like a forgotten corner of the crypto market.…
