Bitcoin briefly tumbled to $79,200 on Wednesday during President Trump's summit with President Xi Jinping in Beijing, as traders weighed a fresh high inflation report and renewed Taiwan tensions. The leading cryptocurrency has since clawed back to reclaim $81,000, tracking Trump's conclusion of his visit to the Chinese capital.
The summit backdrop
The price drop hit just as Trump arrived in Beijing with a delegation of top U.S. executives, including Tesla's Elon Musk and Apple's Tim Cook. The meeting was meant to smooth over trade frictions, but a fresh inflation reading out of Washington and hawkish rhetoric around Taiwan spooked crypto markets. Bitcoin slid more than 2% intraday, touching its lowest level in two weeks.
Taiwan tensions have been a recurring flashpoint for risk assets. The summit's communiqué didn't directly address the island, but Beijing's state media reiterated its 'one China' stance, keeping traders on edge. The inflation report, which showed consumer prices rising faster than expected, added pressure by reinforcing the Federal Reserve's cautious stance on rate cuts.
The recovery
Bitcoin's rebound began as Trump wrapped up his Beijing trip with a joint press conference that struck a conciliatory tone on trade. The presence of Musk and Cook — both heavyweights in China's supply chain — was seen as a signal that business ties would hold, even if political tensions simmered. By Thursday afternoon in Asia, BTC had recovered to $81,000, erasing the earlier losses.
The recovery was broad-based: Ethereum, Solana and other majors also pushed higher. Analysts outside the facts might speculate, but what's clear is that the market absorbed the dual shocks and found a floor — at least for now.
Trump is expected to return to Washington this weekend. Traders will watch for any follow-up tariffs or policy statements tied to the summit. Meanwhile, the inflation data keeps the Fed on track to hold rates at the June meeting, a dynamic that typically keeps a lid on speculative bets. Bitcoin was trading at $81,000 as of press time.
