Bitcoin climbs above $61,000 as Fed signals inflation risks have eased
In brief
- Bitcoin climbed above $61,000 on Thursday, up 4.1% in 24 hours, its firmest level in a week
- Fed Chair Kevin Warsh signaled inflation risks eased at the ECB's Sintra forum, his softest stance since June
- South Korea's Kospi fell 7.9% as Samsung and SK Hynix lost $290 billion combined on AI chip concerns
Warsh's pivot lifts crypto sentiment
The Fed chair's tone shift marks a turning point after months of restrictive monetary policy rhetoric weighed on risk assets. Warsh's softer inflation assessment gave traders reason to believe the central bank might consider rate cuts sooner than previously expected. For bitcoin, which tends to rally when real interest rates fall, the comment provided a much-needed catalyst after a difficult second quarter.
Thursday's push back above $61,000 buys room away from the $40,000 support level that FxPro chief market analyst Alex Kuptsikevich flagged as the next real floor if the rally faltered. "This is a rather dangerous consolidation for the bulls," Kuptsikevich said. The consolidation reflects lingering uncertainty about the Fed's path ahead.
Asian selloff fails to derail bitcoin
Meanwhile, South Korea's Kospi index fell 7.9% on Thursday after Samsung Electronics and SK Hynix shed a combined $290 billion in market value. The rout marked the second time this month the index has buckled on worries about artificial-intelligence chips. Meta added to the unease with plans to sell spare computing power to outside customers, a move that revived questions about whether the AI infrastructure buildout has run ahead of real demand.
Bitcoin held its gain despite the chip selloff pressuring Asian equities—the kind of relative strength that has been missing through a quarter in which money rotated steadily out of crypto and into the AI trade. One strong session does not undo a losing first half for bitcoin, but the momentum shift matters.
Jobs report next
Friday's U.S. jobs report is the next swing factor for bitcoin price direction. A strong payrolls print hands the Fed cover to stay restrictive, while a soft one revives bets on rate cuts. The data will likely determine whether Wednesday's relief holds or fades.
