Bitcoin rallied after Fed Chair Kevin Warsh said inflation risks had eased, supporting sentiment even as global tech stocks weakened. A steep 7.9% decline in South Korea’s Kospi, driven by renewed concerns over AI chip valuations, failed to derail crypto’s upward move.
Bitcoin pushed above $61,000 on Thursday, rising around 4.1% in 24 hours, according to CoinDesk data. The rebound marked its strongest level of the week after an earlier drop had dragged prices to nearly $58,200.
The recovery was fueled by Warsh’s remarks at the ECB forum in Sintra, Portugal, where he noted that inflation risks had moderated. The comments marked a softer tone compared with his earlier hawkish June outlook, which had contributed to sustained outflows from U.S. bitcoin ETFs.
The crypto market’s resilience contrasted sharply with pressure in equities. South Korea’s Kospi fell 7.9% after Samsung Electronics and SK Hynix saw a combined $290 billion wiped off their market value, marking another sharp setback for the AI chip sector, Bloomberg reported.
Sentiment was further unsettled after Meta signaled plans to sell excess computing capacity to external clients, reviving concerns that AI infrastructure spending may be outpacing real demand.
While Asian equities sold off, bitcoin maintained its gains, highlighting relative strength amid a broader rotation of capital toward AI-related assets in recent months.
“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 the next key support level. The return above $61,000 offers some short-term relief, though it doesn’t fully change the broader trend.
Markets now turn to Friday’s U.S. jobs report, which could shape expectations for Federal Reserve policy. A strong print may reinforce a restrictive stance, while weaker data could revive bets on rate cuts, setting the tone for July.
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