Bitcoin has dropped below the $80,000 support level to trade at $79,292.08 with a 1.5% decline following U.S. President Donald Trump's arrival in Beijing. According to BitPinas Daily Market Price, the cryptocurrency's latest decline comes after Trump's remarks signaled a continued hardline stance on the U.S.–Iran conflict while downplaying the need for international mediation. The global crypto market capitalisation edged down 1.63% to $2.65 trillion, while Bitcoin dominance remained elevated at nearly 60%. The cryptocurrency was trading at around $79,821 with a 1.52% decline over the past 24 hours, marking a significant retreat from its recent recovery above $80,700. Bitcoin remains approximately 36% below its all-time high of $126,272 set on October 6, 2025, despite the recent consolidation above $80,700.
The latest Bitcoin decline is directly attributed to U.S. President Donald Trump's arrival in Beijing and his subsequent remarks that signaled a continued hardline stance on the U.S.–Iran conflict. However, recent developments from the Trump-Xi meeting have provided positive momentum for global markets. As reported by mrkt_ai, the NVDA chip restrictions have eased with the U.S. approving sales to Chinese tech firms, which continues the tech and AI expansion. Positive trade talks between the U.S. and China are expected to bring more optimism to markets, potentially reducing some of the geopolitical headwinds that have weighed on Bitcoin's performance. The geopolitical tensions have intensified market uncertainty, particularly given the ongoing U.S.–Iran conflict dynamics that continue to weigh on global risk sentiment and crypto market performance.
Financial expert Robert Kiyosaki has issued stark warnings about inflation and national debt threatening the US economy, directly linking these issues to Bitcoin's current decline. In a recent post on X, Kiyosaki highlighted two primary reasons why inflation will 'steal your money': rising oil prices amid Middle East conflict causing inflation and declining purchasing power, and uncontrollable national debt forcing governments to 'print more fake money''. The investor has consistently criticized the Federal Reserve, calling it a 'criminal organization' responsible for price increases through money printing. Kiyosaki argues that 'the reason we have homelessness today is because we have a Federal Reserve bank' and warns that 'the boomers are going to be homeless all over the place' due to inflation wiping out Social Security benefits. Despite his warnings about economic instability, Kiyosaki continues to recommend gold, silver, bitcoin and ethereum as reliable hedges against inflation and currency collapse, stating that 'real money will go up in purchasing power while fake money steals the wealth of those who do nothing'.
The primary driver behind Bitcoin's retreat remains stronger-than-expected U.S. inflation data that has weighed on market sentiment. As reported by CoinSwitch Markets Desk, April's producer inflation rose 6% year-over-year, its highest level since 2022, raising concerns that interest rates could stay elevated for longer than expected. This development has led traders to reduce short-term risk exposure across crypto markets, with Bitcoin struggling to break above the $81K level as macro uncertainty and risk-off sentiment weigh on momentum. Kiyosaki's warnings about 'the hottest print in April at 3.8% growth over the past 12 months' in the broad US consumer price index provide additional context for the current inflationary pressures affecting Bitcoin's performance.
Despite recent price volatility, the most significant development in Bitcoin's May rally remains the unprecedented institutional accumulation occurring through exchange-traded funds. As reported by Goodreturns, US spot Bitcoin ETFs absorbed approximately 19,000 BTC over a nine-day inflow streak in April alone - representing nine times the amount of new Bitcoin mined during the same period. BlackRock's IBIT now holds roughly 812,000 BTC, capturing an estimated $2.1 to $3 billion of April's total inflows, while Fidelity's FBTC added $184.57 million on May 4 alone. This institutional backing continues to provide fundamental support despite current market weakness, with Kiyosaki specifically recommending Bitcoin as a hedge against inflation and currency debasement.
The crypto market experienced significant volatility with more than $1.4 billion (A$1.93 billion) in Bitcoin short positions being liquidated, according to BTC Markets Weekly Crypto Wrap. This substantial liquidation reflects the market's reaction to the inflation data, Trump's Beijing visit, and broader macro uncertainty. The volatility comes as US CPI rose to 3.8% as Brent crude climbed above $106 (A$146) amid Iran tensions, creating additional pressure on risk assets. Despite the short position liquidations, crypto investment products recorded $858 million (A$1.18 billion) in weekly inflows, indicating continued institutional and retail interest in digital assets. Market analysts suggest that despite short-term bearish bets from successful whale trading strategies, a growing US Fed balance sheet and rising inflation continue to support Bitcoin's long-term outlook.
