Ether, Solana, Dogecoin Advance as Bitcoin Surges Past $60K on Fed Signals

Bitcoin rose back above $60,000 for the first time in over a week after Federal Reserve Chair Kevin Warsh indicated that inflation risks were easing. Solana led the major cryptocurrencies, gaining roughly 16% over the past week, while a downturn in semiconductor stocks weighed on Asian equities and dampened the AI-led rally that has pulled capital away from crypto throughout the quarter.

On Thursday, bitcoin traded above $60,700 following a sharp overnight recovery, as Warsh’s remarks gave a lift to a market that had spent most of June under pressure. Speaking at the European Central Bank’s annual forum in Sintra, Portugal, he said “inflation risks have come down” and reaffirmed the Fed’s commitment to returning inflation to its 2% target.

Warsh offered no clear signal on the Fed’s next policy move, saying officials would assess incoming data ahead of their upcoming meeting. In response, bitcoin reversed earlier losses and climbed back above the $60,000 mark.

Solana outperformed its peers, rising about 4% on the day to around $78 and posting a weekly gain of roughly 16%, making it the strongest large-cap token. Ether traded near $1,630, up around 3%, while XRP held steady at about $1.06. BNB, dogecoin, and Tron, however, showed softer performance over the week.

Traditional markets saw sharper moves. A selloff in semiconductor stocks spread to South Korea, where the Kospi index dropped nearly 7% before trimming losses. Shares of Samsung Electronics and SK Hynix each declined more than 6%, while Japan’s Kioxia slid 13% after a rally that had driven its stock up more than 650% this year.

The decline renewed concerns that the rapid rise in artificial intelligence stocks may have outpaced fundamentals.

Two developments added to the unease. Reports suggested Meta is building a cloud platform to sell excess AI computing capacity, raising fears of overcapacity. Meanwhile, Apple is reportedly in talks with Chinese chipmakers, a move that could pressure South Korean suppliers.

The AI sector has attracted most of the capital flows this quarter, coinciding with bitcoin’s decline and contributing to one of its rare back-to-back quarterly losses. Funds have rotated into chipmakers and AI infrastructure as crypto markets endured a weak first half, suggesting that any sustained weakness in AI stocks could ease pressure on digital assets.

In commodities, Brent crude fell to around $70.60 per barrel, its lowest level since late February before Middle East tensions escalated, as shipping through the Strait of Hormuz normalized.

Gold climbed for a second straight day to trade above $4,060 per ounce following Warsh’s comments, while the U.S. dollar steadied after two days of gains.

Whether bitcoin can sustain its move above $60,000 will depend on whether the softness in AI-related equities develops into a broader rotation back into risk assets or proves to be a brief pullback.