Bitcoin slipped below $80,000 in early Thursday trading to around $79,200, breaking a price floor that had held since mid-April. The decline came as Chinese President Xi Jinping warned U.S. President Donald Trump that mishandling the Taiwan question could push the two countries into “clashes and even conflicts” during a closed-door summit in Beijing. Solana led majors lower with a 5% drop, ether traded near $2,260, and U.S. spot Bitcoin ETFs posted $635 million in net outflows on Wednesday, their largest single-day redemption in weeks. The selloff lands on Jerome Powell’s final day as Federal Reserve chair before Kevin Warsh takes over Friday.
The $80,000 mark had served as technical support since Bitcoin reclaimed it on May 4. A spot Bitcoin ETF is an exchange-traded fund that holds actual bitcoin and tracks its price, allowing investors to gain exposure through a brokerage account rather than a crypto wallet.
Key takeaways
- Bitcoin fell to about $79,200 in early Thursday trading after Xi Jinping warned Trump that the Taiwan issue could trigger “conflict” between the two countries.
- Solana dropped 5% and U.S. spot Bitcoin ETFs recorded $635 million in net outflows on May 13, with BlackRock’s IBIT alone losing $285 million.
- Powell exits as Fed chair Friday, replaced by Kevin Warsh, who was confirmed in a party-line vote Tuesday. His first FOMC meeting is set for June 16-17.
- April CPI of 3.8% released last week removed remaining 2026 rate cut expectations, compounding macro pressure on risk assets.
Published: May 14, 2026 09:10 UTC
What triggered the break below $80,000
Trump landed in Beijing on Wednesday for the first state visit by a sitting U.S. president in nearly a decade. Xi opened the closed-door bilateral by raising Taiwan, telling Trump the question “is the most important issue in China-U.S. relations” and warning that mishandling it could push the relationship “into a highly perilous situation.” He framed the moment using the “Thucydides Trap” metaphor, asking whether a rising and a ruling power can avoid war.
The market reaction was immediate. Bitcoin had bounced off $80,000 four times in the prior week before breaking through. According to CoinDesk, the move came alongside a broader risk-off in Asian equities and oil. Solana fell 5% to lead majors lower, while ether held above $2,250.
The geopolitical hit landed on top of an already weakened bid. U.S. spot Bitcoin ETFs saw $635 million leave on Wednesday, with BlackRock’s IBIT accounting for $285 million of the outflow. That follows a $233 million net redemption on May 12 led by Fidelity’s FBTC and Ark’s ARKB. Cumulative net inflows since launch remain positive, but the weekly trend has flipped.
Why the macro setup matters
The Bitcoin selloff is part of a broader repricing of rate expectations. The April CPI release last week came in at 3.8% year-over-year, the highest reading since 2023. Futures markets had been pricing one to two quarter-point cuts before year-end. After the print, those bets collapsed to zero.
Powell finishes his term Friday after the most contentious Fed chair handover in modern history. Warsh, 56, won Senate confirmation Tuesday in a 50-49 party-line vote with Democrats opposed. He has signaled a smaller balance sheet and a more rules-based reaction function, both of which traders read as tighter for risk assets in the short run. His first FOMC meeting as chair is June 16-17. In an unusual move, Powell will remain on the Fed’s board of governors rather than depart entirely.
Impact on the rest of the market
The break below $80,000 puts attention on the next technical level. Traders cited by CoinDesk point to $76,000-77,000 as the next visible support, with $73,000 as the swing low from earlier in the spring. A daily close below $80,000 would mark the first since April 17.
For ether holders, the day’s macro hit also coincides with a separate setback for one of the largest Ethereum ecosystem firms. Consensys, the company behind the MetaMask wallet, on Wednesday delayed its U.S. IPO until at least the fall, citing market conditions. Ledger paused its own listing plans the same day. Both decisions reinforced an investor view that the crypto IPO window has closed for now.
Senate Banking Committee members are scheduled to mark up the 309-page CLARITY Act at 10:30 a.m. ET Thursday, a vote that bulls had been counting on to support sentiment. Citi analysts have tied a $143,000 year-end Bitcoin scenario to passage of the bill. A breakdown of the committee vote, or unexpected amendments, could deepen Thursday’s move.
What to watch next
Three near-term catalysts will define the next 48 hours for crypto markets. First, the Senate Banking markup at 10:30 a.m. ET, where Republican Senator John Kennedy remains the only uncommitted vote on the 13-11 Republican-led panel. Second, the final hours of the Trump-Xi summit and any joint communique on Taiwan, trade, or AI. Third, Friday’s transition at the Fed and any public statement from Warsh.
If $76,000 fails to hold and ETF outflows continue at this pace, the technical setup points toward a deeper retest. If the Senate Banking vote clears with at least 13 ayes and the Xi-Trump summit ends without further escalation, the same setup can flip quickly back to the upside.
FAQ
Why did Bitcoin drop below $80,000 on May 14?
Three factors hit at once. Xi Jinping warned Trump that the Taiwan question could trigger conflict between the U.S. and China during their Beijing summit, U.S. spot Bitcoin ETFs posted $635 million in outflows on May 13, and hot April CPI of 3.8% removed remaining 2026 Fed rate cut expectations. Powell’s last day as Fed chair on May 15 added to the uncertainty.
What is the next technical support level for Bitcoin?
Traders are watching $76,000-77,000 as the next visible support after the break below $80,000. The next major level beneath that is around $73,000, which marked the swing low earlier this spring. A daily close below $80,000 would be the first since April 17.
How does the Fed chair change affect crypto?
Kevin Warsh takes over from Jerome Powell on May 16. Warsh has signaled a smaller Fed balance sheet and a more rules-based policy approach, both viewed as tighter for risk assets in the near term. His first FOMC meeting is June 16-17, leaving a four-week gap with no scheduled Fed communication, which has widened implied volatility on bitcoin options.
