Bitcoin Climbs 4% Back Above $61K as Inflation Worries Ease

Bitcoin gained after Fed Chair Kevin Warsh said inflation risks had eased, helping sentiment despite broader weakness in tech markets. A sharp 7.9% drop in South Korea’s Kospi, driven by renewed concerns over AI chip valuations, had little impact on crypto demand.

Bitcoin rose above $61,000 on Thursday, up roughly 4.1% over the past 24 hours according to CoinDesk data. The move marked its strongest level of the week after an earlier sell-off pushed prices down to around $58,200.

The rebound was supported by comments from Federal Reserve Chair Kevin Warsh, who said at the ECB forum in Sintra, Portugal, that inflation risks had moderated. It was his most dovish tone since a hawkish June rate outlook triggered several weeks of outflows from U.S. bitcoin ETFs.

The crypto strength contrasted with a weak session in equities, particularly in Asia. South Korea’s Kospi slid 7.9% after Samsung Electronics and SK Hynix collectively lost about $290 billion in market value, marking the second sharp pullback this month tied to concerns over the sustainability of the AI chip rally, according to Bloomberg.

Adding to the pressure, Meta reportedly outlined plans to monetize excess computing capacity by selling it to external customers, fueling doubts that the AI infrastructure boom may be running ahead of actual demand.

Unlike equities, bitcoin held onto its gains, showing relative resilience even as capital has largely rotated toward AI-related assets over recent months.

“ This is a rather dangerous consolidation for the bulls,” FxPro analyst Alex Kuptsikevich said earlier in the week when bitcoin remained below $60,000, warning that a breakdown could expose the $40,000 level as key support. Thursday’s move back above $61,000 provides some buffer, though it does not reverse the broader downtrend in the first half of the year.

Looking ahead, Friday’s U.S. jobs report will be the next major catalyst. A strong reading could reinforce the Federal Reserve’s restrictive stance, while weaker data may revive expectations for rate cuts—setting the tone for July trading.