Bitcoin Tops $61,000 As Fed Chair Warsh Eases Inflation Worries

Bitcoin climbed above $61,000 today, up about 4% over 24 hours, marking its firmest level in over a week after earlier falling to $58,200. The rally followed comments from Federal Reserve Chair Kevin Warsh at the European Central Bank’s forum in Sintra, Portugal, where he said inflation risks had eased, his softest remarks since a hawkish June outlook triggered weeks of outflows from US Bitcoin ETFs.

Bitcoin Holds Steady As Tech Stocks Slide

The gain came despite a rough day for tech markets. South Korea’s Kospi index dropped 7.9% after Samsung Electronics and SK Hynix lost a combined $290 billion in market value, the second such selloff this month tied to AI chip concerns.

Bitcoin Diverges From AI-Linked Stock Weakness

While the chip selloff weighed on Asian equities, Bitcoin held its gains, a notable shift after a quarter in which capital steadily moved from crypto into AI related trades. Analysts had flagged the market’s recent consolidation as risky for bulls, with some pointing to lower support levels if Bitcoin failed to hold above $60,000. Thursday’s move above $61,000 provides some breathing room, though it does not offset a weak first half of the year.

Friday’s US jobs report is expected to shape near term direction. A strong reading could support a more restrictive Fed stance, while a weaker print may boost expectations for rate cuts.