Solana Leads Crypto Market Decline as Bitcoin Falls Below $80K Amid Inflation Fears

Solana (SOL) led the cryptocurrency market lower on Thursday as rising inflation concerns and growing geopolitical tensions between the United States and China triggered a broad sell-off across digital assets. SOL dropped 5.6% to around $90, erasing most of the gains it had accumulated over the past two weeks and making it the worst-performing major cryptocurrency of the session.

The wider crypto market also weakened after Bitcoin slipped below the key $80,000 support level for the first time in days. BTC traded near $79,200 during Asian hours, falling more than 2% over the last 24 hours as investors reacted to stronger-than-expected U.S. inflation data and uncertainty surrounding the Trump-Xi summit in Beijing.

The latest U.S. economic reports showed inflation continuing to rise faster than expected. Producer prices climbed 1.4% month-over-month, significantly above forecasts, while consumer inflation reached 3.8%, its highest level in nearly three years. The data reduced expectations that the Federal Reserve could begin cutting interest rates later this year, putting additional pressure on risk assets such as cryptocurrencies.

Investor sentiment was further shaken after Chinese President Xi Jinping reportedly warned of possible “collisions or clashes” over Taiwan during talks with U.S. President Donald Trump. The comments added to global market uncertainty and contributed to volatility across Asian equities and crypto markets.

Ethereum also declined, falling to roughly $2,250, while XRP and BNB recorded smaller losses. Dogecoin stood out as the only major cryptocurrency to remain in positive territory during the session.

Despite weakness in crypto markets, technology stocks tied to artificial intelligence continued to perform strongly. Cisco shares surged after issuing upbeat revenue guidance, while AI-driven momentum helped Nasdaq futures edge higher.

Analysts are now watching Bitcoin’s $78,000 support level closely. If BTC fails to hold above that zone, additional downside pressure could spread across altcoins, including Solana, in the coming days.