Fed Chair remarks on softened inflation risks lift Bitcoin 4% above $61,000, contrasting with tech stock declines.
Bitcoin climbed more than 4% to trade above $61,000, reaching its highest level in over a week. The rally followed comments from Federal Reserve Chair Kevin Warsh indicating inflation risks had eased, reducing fears of further hawkish monetary policy.
The cryptocurrency’s gains contrasted sharply with a 7.9% drop in South Korea’s Kospi index, driven by concerns over AI chip demand. Earlier this week, Bitcoin had fallen to as low as $58,200 amid broader market volatility. Analysts note the rebound remains fragile, with Friday’s U.S. jobs report likely to influence interest rate expectations.
The move also followed weeks of outflows from U.S. Bitcoin exchange-traded funds, triggered by the Fed’s hawkish June rate outlook. South Korean tech giants Samsung Electronics and SK Hynix saw a combined $290 billion wiped from their market value during the session.