Bitcoin failed to hold above the $80,500 support zone, extending its negative movement and slipping below the $80,000 level, with additional losses pushing the cryptocurrency under $79,500.

Bitcoin dropped below $79,000, hitting a low at $78,720 before beginning to trade within a narrow range to consolidate losses. The price also posted a slight rebound above the 23.6% Fibonacci retracement level of the downward move from the $81,250 high to the $78,720 low.

Bitcoin is currently trading below the $80,500 level and beneath the 100-hour simple moving average, reflecting continued short-term selling pressure.

If the price manages to stabilize above the $79,000 level, it could attempt another upward move. The first immediate resistance appears near the $80,000 level, which also aligns with the 50% Fibonacci retracement level of the latest downward move.

The first major resistance stands near $80,500, while a bearish trendline is forming on the hourly chart with resistance near $80,700 for the BTC/USD pair.

If the price closes above the $80,700 level, it could open the door for further gains toward the $81,200 zone, while additional upside momentum may push the price toward $82,000, with the next resistance near $82,500.

Further downside possible

On the other hand, if Bitcoin fails to break above the $80,500 resistance zone, it could start another downward wave. Immediate support is located near the $79,200 level.

The first major support stands at $78,800, followed by another important support near $78,000. If selling pressure continues, the price could decline toward the $76,200 area in the near term.

The $75,500 level remains the key major support for now, as a break below it could make a short-term recovery significantly more difficult for Bitcoin.

Oil prices stabilized on Thursday after giving up part of their earlier gains, following Iranian media reports stating that around 30 vessels had crossed the Strait of Hormuz over the past several hours, while Iran’s semi-official Fars News Agency cited a source saying Tehran had begun allowing some Chinese ships to pass through the strait.

At the same time, the White House announced that US President Donald Trump and Chinese President Xi Jinping agreed during their meeting on the need to keep the Strait of Hormuz open to ensure the free flow of energy, while Xi said that “China’s rejuvenation” and the slogan “Make America Great Again” could move forward side by side.

After Brent crude touched a session high of $107.13 per barrel earlier in the day, futures steadied at $105.63 by 11:00 GMT, while US West Texas Intermediate crude rose by one cent to $101.03 per barrel.

Both benchmarks had fallen on Wednesday amid investor concerns over the possibility of further US interest rate hikes as fuel prices continue rising and adding pressure to inflation. Brent lost more than $2 per barrel, while US crude fell by more than $1.

According to the White House, Xi expressed interest in purchasing more US oil in an effort to reduce China’s dependence on the Strait of Hormuz. However, China, which was not previously a major buyer of US crude, has not imported any shipments since May 2025 due to 20% tariffs imposed during the trade war.

The Strait of Hormuz remains one of the world’s most critical energy corridors and has faced major disruptions since the outbreak of the war with Iran in late February.

Meanwhile, Iran appears to have strengthened its control over the strait through arrangements with Iraq and Pakistan for shipping oil and liquefied natural gas from the region.

Before the Fars report, a giant Chinese tanker carrying two million barrels of Iraqi crude successfully crossed the strait on Wednesday after remaining stranded in the Gulf for more than two months.

Shipping data from LSEG also showed that a Panama-flagged tanker operated by Japanese refining group Eneos managed to pass through the strait, marking the second known case of a Japan-linked vessel successfully making the crossing.

The International Energy Agency warned on Wednesday that global oil supplies will remain below demand this year as inventories continue declining at an unprecedented pace.

In the United States, Energy Information Administration data showed crude oil inventories fell by 4.3 million barrels to 452.9 million barrels during the week ending May 8, driven by stronger exports, despite an unexpected rise in distillate inventories that contrasted with market expectations for a decline.

The US dollar remained strong on Thursday, supported by rising US Treasury yields, as investors increasingly priced in the possibility of Federal Reserve interest rate hikes later this year, while global markets focused on the two-day summit between US President Donald Trump and Chinese President Xi Jinping.

Xi told Trump that trade talks were making progress, but warned that disagreements over Taiwan could push relations onto a “dangerous path,” during a summit Trump described as potentially “the biggest summit ever.”

As the summit got underway, the Chinese yuan traded near its highest level in three years, while the offshore yuan rose for an eighth consecutive session against the dollar to 6.7845 yuan per dollar.

In broader markets, the dollar steadied on Thursday, leaving the euro little changed at $1.1717, though the single currency remains on track for a weekly loss of around 0.6%, its largest in two months.

The US dollar index, which measures the currency against a basket of major peers, climbed to 98.48 points, posting gains of more than 0.6% this week and heading for its strongest weekly performance since the outbreak of the Iran war.

Meanwhile, the dollar edged slightly lower against the Japanese yen to 157.87 yen, after the yen received support from comments by Bank of Japan board member Kazuyuki Masu, who said the Japanese central bank should move quickly to raise interest rates if there are no clear signs of economic slowdown.

Japanese authorities are believed to have intervened several times in recent weeks to limit dollar strength, but growing expectations for US rate hikes this year continue to pressure the yen, with the dollar recovering roughly half of its losses since Tokyo stepped in to support the local currency.

Inflation Data Supports the Dollar

The dollar’s rally accelerated this week after a series of reports showed mounting inflationary pressures within the US economy. The latest data on Wednesday showed US producer prices posted their largest increase in four years during April, just one day after data showed consumer inflation reached its highest level in three years.

Carol Kong, currency strategist at the Commonwealth Bank of Australia, said the recent inflation data “will not be welcomed by Federal Reserve officials, including incoming chairman Kevin Warsh.”

The US Senate confirmed Kevin Warsh as Federal Reserve chairman on Wednesday, placing him at the helm of the US central bank at a time of rising inflation risks.

Kong added that the bank expects a tightening cycle to begin in December, with three interest rate hikes anticipated during the current cycle.

According to CME Group’s FedWatch tool, the probability of a US rate hike in December rose to 31.8%, up from just over 16% a week earlier.

Shifting rate expectations and inflation concerns pushed long-term US Treasury yields to their highest levels since mid-2025, although the 30-year Treasury yield eased slightly to 5.029%.

The British pound, meanwhile, held steady against both the dollar and the euro after data showed the UK economy unexpectedly grew by 0.3% in March, suggesting the British economy may have remained relatively resilient amid the escalating Iran war.

Gold prices declined in European trading on Thursday, extending losses for the third consecutive session, under pressure from the continued strength of the US dollar in foreign exchange markets, especially as renewed inflationary pressures in the United States strongly reinforced expectations that the Federal Reserve could raise interest rates before the end of this year.

Global attention is focused on the summit between US President Donald Trump and Chinese President Xi Jinping, which began today in Beijing, where discussions are expected to include extending the trade truce between the world’s two largest economies, alongside complex geopolitical issues, most notably developments in the Iran war and the future of navigation through the Strait of Hormuz.

Price Overview

• Gold prices today: Gold prices fell 0.45% to ($4,668.70), from the opening level at ($4,689.29), and recorded a session high at ($4,718.77).

• At Wednesday’s settlement, gold prices lost 0.6%, marking a second consecutive daily decline, amid continued correction and profit-taking from the three-week high at $4,773.58 per ounce.

• Aside from profit-taking activity, gold prices declined following the release of strong US inflation data.

US Dollar

The dollar index rose more than 0.1% on Thursday, maintaining gains for the fourth consecutive session and reflecting continued strength in the US currency against a basket of major and minor currencies.

The dollar received additional support from rising US Treasury yields, as investors bet that the Federal Reserve will raise interest rates at least once this year.

Trump-Xi Meeting

Global attention is focused on Beijing, where the historic meeting between US President Donald Trump and Chinese President Xi Jinping is taking place, amid Washington’s efforts to secure economic gains and preserve the fragile trade truce between the world’s two largest economies, alongside discussions on complex geopolitical issues, most notably the US-Israeli war against Iran and its regional and international implications.

Trump is expected to seek China’s assistance in pressuring Iran toward a peace agreement in the Middle East, though analysts believe he is unlikely to receive the support he wants.

US Interest Rates

• Data released this week in the United States showed consumer prices in April rose at the fastest pace in three years, while producer prices recorded their strongest increase in four years, highlighting renewed inflationary pressures facing Federal Reserve policymakers.

• According to the CME Group’s FedWatch tool, markets are currently pricing in a 31.8% probability of a Federal Reserve rate hike in December, up from just over 16% a week ago.

• Pricing for keeping US interest rates unchanged at the June meeting increased from 96% to 99%, while pricing for a 25 basis point rate cut declined from 4% to 1%.

• To further reprice those expectations, investors continue closely monitoring upcoming US economic data, in addition to comments from Federal Reserve officials.

Gold Outlook

Peter Grant, vice president and senior metals strategist at Zaner Metals, said: “Inflation remains elevated, which has strengthened expectations for higher interest rates for longer, and that has pressured gold over the past two sessions.”

Brian Lan, managing director at GoldSilver Central, said: “Gold appears to be going through a consolidation phase at the moment, as everyone waits to see the outcome of the high-level talks between the United States and China.”

Lan added: “Gold is trending slightly lower, and I think this presents a good opportunity for investors looking to enter the precious metals market.”

SPDR Fund

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, increased on Tuesday by 1.71 metric tons, marking the fifth consecutive daily increase, bringing total holdings to 1,039.99 metric tons, the highest level since April 28.