Solana drops 5%, bitcoin below $80,000 as Xi warns Trump on Taiwan conflict

Bitcoin slipped below the $80,000 support level on Thursday, and Solana led losses among major cryptocurrencies with a 5% drop, as geopolitical tensions added to the selling pressure from persistent inflation.

Bitcoin traded at $79,200 in Asian hours, down 2.3% over 24 hours, according to CoinGecko data. The $80,000 level had served as a floor for most of the past week but cracked under back-to-back inflation shocks. Solana (SOL) dropped 5.6% to $90, giving back most of the weekly gains that had made it the standout altcoin. Ether fell 2.1% to $2,250, while BNB shed 1.6% to $660 but still held a 3.9% weekly gain. The sell-off accelerated after Chinese President Xi Jinping warned U.S. President Donald Trump against escalating the Taiwan conflict, dampening hopes for a recovery in risk assets. Live crypto prices and charts on NowPrice show how the market is reacting to the evolving macro and geopolitical landscape.

For crypto traders, the combination of sticky inflation and geopolitical risk is a potent headwind. Higher-for-longer interest rates reduce the appeal of speculative assets like cryptocurrencies, while a stronger U.S. dollar (DXY) typically pressures risk-on markets. The breakdown of the $80,000 level in bitcoin could trigger further selling if it fails to reclaim that zone quickly. On-chain data shows exchange reserves remain low, which historically has been a bullish supply-side signal, but short-term sentiment is dominated by macro fears. Traders should watch for any diplomatic de-escalation or a shift in Fed rhetoric that could reverse the risk-off mood.

Looking ahead, the market will focus on any further comments from U.S. and Chinese officials regarding Taiwan, as well as upcoming U.S. economic data that could influence the Federal Reserve's rate path. A break above $82,000 in bitcoin would signal a potential recovery, while a sustained move below $78,000 could open the door to further downside toward $75,000. For altcoins, Solana's ability to hold above $85 will be key to maintaining its relative strength.