Bitcoin Below $80K, Solana Drops 5% Amid Xi-Trump Taiwan Tensions

Bitcoin dropped below its $80,000 support level, trading at $79,200 during Asian hours Thursday—down 2.3% in 24 hours and 2.2% over seven days, according to CoinGecko data. The decline coincided with Chinese President Xi Jinping's warning to Donald Trump about potential conflict over Taiwan during the first U.S. presidential visit to China in nearly a decade.

Solana (SOL) led broader crypto losses with a 5.6% decline. The wider cryptocurrency market weakened as traders faced back-to-back inflation surprises alongside escalating geopolitical tensions. Only Dogecoin posted modest gains while major digital assets retreated. Analysts now watch $78,000 as the next critical support level for Bitcoin.

The pullback extended beyond crypto into Asian equity markets, though AI-linked technology shares and names like Cisco continued outperforming amid the volatility. The confluence of macroeconomic headwinds and geopolitical risk created a risk-off environment that pressured risk assets broadly.

Taiwan tensions have historically triggered flight-to-safety trades that reduce appetite for volatile assets like cryptocurrencies. The Xi-Trump summit added uncertainty to markets already sensitive to [INTERNAL: inflation data] shocks. Traders are reassessing risk positions as the geopolitical calendar grows more active and economic data becomes less predictable.

Crypto investors should monitor whether Bitcoin holds above $78,000 or tests lower support levels. The interplay between traditional macro factors and geopolitical developments increasingly determines short-term price direction for digital assets. This is not financial advice.