Bitcoin (BTC) Price: Drops Below $80K as Trump-Xi Summit and Inflation Data Weigh on Markets

TLDR

• Bitcoin fell to $79,200, dropping 2.3% in 24 hours after breaking below the key $80,000 support level.
• Solana led losses among major cryptos with a 5.6% drop to $90, while Dogecoin was the only major to gain.
• Back-to-back inflation shocks — CPI at 3.8% and PPI at 1.4% month-over-month — rattled Federal Reserve rate-cut expectations.
• The Trump-Xi summit in Beijing added geopolitical pressure, with Xi warning of potential conflict over Taiwan.
• Bitcoin spot ETFs recorded $233 million in net outflows on May 12, and analyst Ali Charts warned of a possible retest of the 50-day SMA at $75,000.

Bitcoin pulled back sharply on Thursday as a combination of hot inflation data and fresh geopolitical tension weighed on risk assets. BTC was trading at $79,200 during Asian hours, down 2.3% over 24 hours.

The move came after Bitcoin had been holding the $80,000 level as a floor for most of the past week. That floor gave way under pressure from two consecutive inflation surprises.

Tuesday’s CPI reading came in at 3.8% annually — the hottest in nearly three years. Wednesday’s producer price index added to the pressure, printing at 1.4% month-over-month versus a 0.5% forecast, and 6% year-over-year.

These numbers complicate the Federal Reserve’s path to cutting interest rates, removing a key tailwind that crypto markets had been pricing in.

Geopolitical Tension Adds to Sell Pressure

The Trump-Xi summit in Beijing, the first visit by a sitting U.S. president to China in nearly a decade, stirred fresh uncertainty. During their meeting at the Great Hall of the People, President Xi warned of potential “collision or even clashes” if the Taiwan issue is mishandled.

China’s readout of Xi’s remarks was released before the meeting had even concluded, rattling sentiment across global markets. Asian equities swung between gains and losses, with mainland Chinese shares falling 1.3%.

Solana (SOL) led crypto losses with a 5.6% drop to $90, giving back most of its weekly gains. Ether fell 2.1% to $2,250 and is down 3% on the seven-day chart. BNB shed 1.6% to $660, while XRP slipped 1.7% to $1.43. Dogecoin was the only major to post a gain, up 0.9% to $0.1126.

Analyst Ali Charts pointed out on X that Bitcoin appears to have been rejected by its 200-day simple moving average at $82,500, and warned that this “may lead to a retest of the 50D SMA at $75,000.” That would represent a further drop of around 5% from current levels.

ETF Outflows Signal Institutional Exits

On-chain data firm Glassnode noted that the 7-day SMA of U.S. spot ETF netflow dropped to -$88 million per day — the largest outflow since mid-February. Glassnode highlighted that February’s outflows happened into price weakness, while this wave is “selling into strength, with BTC trading near $80k,” suggesting institutions were using the recent recovery as an exit opportunity.

Bitcoin spot ETFs recorded $233 million in net outflows on May 12, led by Fidelity’s FBTC at $86.13 million. Ethereum spot ETFs shed $131 million in the same session.

Key Support Levels to Watch

Matt Mena, senior crypto research strategist at 21Shares, said the $80,000 level remains critical. A break below would likely trigger a retest of $78,000, with $75,000 as the next defensive zone.

The $78,000 level marked the early-May low before Bitcoin’s rally to $82,000. That level is the next key test as macro data and the Trump-Xi talks continue to develop.

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