Bitcoin Breaks $61,000 Level as Inflation Fears Recede

Bitcoin climbed after Fed Chair Kevin Warsh said inflation risks had eased, lifting risk sentiment even as global equities weakened. A 7.9% drop in South Korea’s Kospi, driven by renewed concerns over AI chip valuations, did not weigh on crypto trading.

Bitcoin rose back above $61,000 on Thursday, up about 4.1% over 24 hours, according to CoinDesk data. The move marked its strongest level of the week, recovering from an earlier decline that had pushed prices toward $58,200.

The rebound followed Warsh’s comments at the ECB forum in Sintra, Portugal, where he signaled that inflation pressures had moderated. The tone was softer compared with his earlier hawkish stance in June, which had helped trigger weeks of outflows from U.S. bitcoin ETFs.

The crypto gain contrasted with sharp losses in equities. South Korea’s Kospi fell 7.9% after Samsung Electronics and SK Hynix together shed roughly $290 billion in market value, extending volatility across AI chip stocks, Bloomberg reported.

Adding to concerns in tech, Meta reportedly plans to sell excess computing capacity to outside customers, renewing questions about whether AI infrastructure investment is running ahead of actual demand.

Despite the equity selloff, bitcoin held its advance, showing relative resilience amid ongoing rotation into AI-related assets.

“This is a rather dangerous consolidation for the bulls,” FxPro analyst Alex Kuptsikevich said earlier in the week, warning that a breakdown could expose $40,000 as key support. The recovery above $61,000 offers some near-term stability, though the broader trend remains under pressure.

Markets now look to Friday’s U.S. jobs report for direction, with strong data likely reinforcing a restrictive Fed stance and weaker figures potentially reviving rate-cut expectations into July.