CoinDesk
Bitcoin pushed back toward the $60,000 level after Federal Reserve Chair Kevin Warsh told the European Central Bank's annual forum in Sintra, Portugal that inflation risks have come down and that the central bank remains firmly committed to its 2% target. The largest crypto asset pared earlier losses to trade around $60K, up more than 2% over the prior 24 hours, per CoinDesk Data.
Warsh declined to pre-commit to the Fed's next rate decision, saying policymakers would weigh incoming data at their meeting in roughly four weeks. Instead, he emphasized price stability. "Inflation risks have come down," Warsh said. "If there were people in households or the business sector, in the financial markets, who thought that this central bank was going to be comfortable with an inflation objective above 2%, well, I guess they'd be disappointed. We're going to deliver price stability in the U.S."
Why it matters
Warsh also framed the AI capex boom as a potential supply-side force that could reshape the U.S. economy's productive capacity, with "huge implications for monetary policy" if it materializes, though he said it remains too early to judge. The remarks matter for crypto because a Fed increasingly comfortable that inflation is cooling opens the door to easier policy, while a supply-side AI productivity story adds a longer-dated tailwind to risk assets.
The Sintra panel also featured ECB President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank of Canada Governor Tiff Macklem, who broadly agreed that central banks should step back from explicit forward guidance. Lagarde said she regretted feeling "bound and compelled" by past forward guidance and now favors "framework guidance," and Warsh echoed that the Fed's priority is to "get policy right."
Market impact
The move lifted $BTC back toward a round-number resistance level that has acted as a magnet for weeks. Traders are watching whether the price can hold above $60K into the next Fed meeting, with rate-cut expectations now doing more of the work than any single inflation print.
Frequently asked questions
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What did Fed Chair Warsh say about inflation at Sintra?
Warsh said "inflation risks have come down" and that the Fed remains firmly committed to its 2% target, signaling that anyone expecting the central bank to tolerate higher inflation "would be disappointed."
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Why is Bitcoin moving on the Sintra remarks?
Softer inflation language from the Fed chair reinforces rate-cut expectations and weighs on the dollar, both of which tend to support $BTC. Bitcoin pared earlier losses to trade back around $60,000, up more than 2% over 24 hours per CoinDesk Data.
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Did Warsh signal when the Fed will next cut rates?
No. Warsh declined to pre-commit to the next rate decision, saying policymakers would debate incoming data at their meeting in roughly four weeks.
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How does AI fit into Warsh's outlook?
Warsh said the AI capex boom is currently showing up on the demand side but could expand the economy's supply side, with "huge implications for monetary policy" if that shift materializes, though he called it too early to judge.
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Did other central bankers agree with Warsh on forward guidance?
Yes. On the same Sintra panel, ECB President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank of Canada Governor Tiff Macklem broadly agreed that central banks should move away from explicit forward guidance, with Lagarde favoring "framework guidance" instead.
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