Fed Chair Kevin Warsh’s comments on reduced inflation risks lift Bitcoin, pushing it toward $60,000 amid policy clarity.
Bitcoin surged toward $60,000 after Federal Reserve Chair Kevin Warsh indicated inflation risks have diminished. The cryptocurrency rose more than 2% in 24 hours, recovering from earlier losses as markets reacted to the Fed’s stance on price stability.
Warsh reaffirmed the central bank’s 2% inflation target, dismissing speculation of a higher tolerance. He also highlighted artificial intelligence’s potential to reshape economic growth and monetary policy, though he avoided signaling the Fed’s next rate move. The remarks came during a panel at the European Central Bank’s forum in Sintra.
The Fed’s shift away from explicit forward guidance on rates was echoed by other global central bankers, adding to market uncertainty. Bitcoin’s rebound reflects investor optimism amid clearer signals on inflation and policy direction.