CoinDesk
Bitcoin climbed back above $61,000 on Thursday, gaining about 4.1% over 24 hours to its firmest level in more than a week, after Federal Reserve Chair Kevin Warsh said inflation risks had eased. The move followed weeks of net outflows from US spot bitcoin ETFs that had been triggered by a hawkish June rate outlook.
Why it matters
The catalyst was a single remark from Warsh at the European Central Bank's forum in Sintra, Portugal, his first notably softer comment since the Fed set off the hawkish repricing. A softer inflation read from the Fed chair is the one signal the market has been waiting for to underwrite a re-entry, and it landed against a backdrop where positions had already been cut.
The move also diverged sharply from risk elsewhere. South Korea's Kospi fell 7.9% after Samsung Electronics and SK Hynix shed a combined $290 billion in market value on renewed AI-chip demand concerns, with Meta announcing plans to sell spare compute to outside customers and reviving the question of whether the AI infrastructure buildout has run ahead of real demand.
Market impact
Crypto held its bid while Asian tech sold off, the kind of relative strength that has been absent through a quarter in which capital rotated steadily out of digital assets and into the AI trade. Bitcoin's push back above $61,000 buys distance from the $58,200 low it printed earlier this week, but as FxPro chief market analyst Alex Kuptsikevich warned, "This is a rather dangerous consolidation for the bulls," with $40,000 as the next real support if the floor gives way.
Friday's US jobs report is the immediate swing factor. A strong payrolls print gives the Fed cover to stay restrictive and unwind today's bid; a soft one revives rate-cut bets and extends the move. Either print sets the tone for July.
Frequently asked questions
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Why did Bitcoin jump above $61,000 on Thursday?
Bitcoin climbed back above $61,000 on Thursday, up about 4.1% over 24 hours, after Federal Reserve Chair Kevin Warsh said inflation risks had eased at the ECB's Sintra forum, his first notably softer comment since a hawkish June rate outlook set off weeks of spot ETF outflows.
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How did crypto react versus tech stocks the same day?
While Bitcoin held its gains, South Korea's Kospi fell 7.9% after Samsung Electronics and SK Hynix shed a combined $290 billion in market value on renewed AI-chip demand worries, and Meta added to the unease by announcing plans to sell spare compute to outside customers.
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What did FxPro's Alex Kuptsikevich say about the setup?
Kuptsikevich warned earlier this week that "This is a rather dangerous consolidation for the bulls" when Bitcoin was pinned below $60,000, flagging $40,000 as the next real support if the floor gave way. Thursday's push above $61,000 bought distance from that edge but did not undo a losing first half.
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What is the next major catalyst for Bitcoin price?
Friday's US jobs report is the immediate swing factor. A strong payrolls print gives the Fed cover to stay restrictive and unwind the bid; a soft print revives rate-cut bets and extends the move. Either result is expected to set the tone for July.
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How low did Bitcoin trade earlier this week before the rebound?
Bitcoin fell to as low as $58,200 earlier in the week before staging Thursday's rebound, with the push back above $61,000 marking its firmest level in more than a week and a return to the strongest footing since the hawkish June Fed outlook.
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