Bitcoin climbed above $61,000 on Thursday after Federal Reserve Chair Kevin Warsh signaled that inflation risks had eased, marking the cryptocurrency’s strongest footing in a week following a sharp selloff that pushed the bitcoin price to $58,200.
Warsh told the European Central Bank’s forum in Sintra, Portugal that inflation expectations and risks had come down since he took over as chairman. His comments represented his first notably softer tone on inflation since a hawkish June rate outlook that had sparked weeks of outflows from U.S. bitcoin exchange-traded funds.
The move was notable because it came against a rough day for technology stocks, with South Korea’s Kospi index falling 7.9% amid concerns about artificial-intelligence chip demand. Bitcoin held its gain despite the broader market turbulence, a sign of relative strength that had been missing through the first half of 2026.
Earlier in the week, bitcoin price had plunged from $61,000 to $58,000 in a sharp sell-off on June 25, marking weakness from earlier highs. The recovery back above $61,000 represented a rebound of more than $3,000 in less than a week, driven largely by the improved inflation outlook signaled by the Fed’s new leadership.
Warsh emphasized that the central bank would remain focused on bringing inflation back to its 2% target, but his acknowledgment that inflation risks had diminished gave markets reason to believe the Fed might not need to maintain its current restrictive stance indefinitely. This softer language on the inflation front—even as Warsh maintained his commitment to price stability—helped shift sentiment in favor of risk assets like bitcoin.
Analysts cautioned that the rebound, while meaningful, still left bitcoin well below its earlier 2026 highs. One strong session does not undo the losses from the first half of the year, during which bitcoin price fell more than 30%. The U.S. jobs report on Friday was expected to be the next key driver for market direction in July, with a strong payrolls print potentially giving the Fed cover to remain restrictive, while a weak one could revive bets on rate cuts.
Sources
- CoinDesk — Bitcoin’s climb above $61,000, Warsh’s inflation comments at the ECB forum, and the recovery from $58,200 lows
- The New York Times — Warsh’s statement that inflation risks had eased in the weeks since he took over as chairman
- Wall Street Journal — Warsh’s comments on inflation outlook improving
- Australian Financial Review — Warsh’s quote on inflation expectations and risks coming down
- CoinStats — Bitcoin’s current price level of $61,555.74 as of July 3, 2026
