Bitcoin Climbs Above $61,000 Amid Renewed Market Optimism
Quick Reads:
- Bitcoin jumped 4.1% in 24 hours, bouncing from a weekly low of $58,200
- Fed Chair Kevin Warsh told the ECB’s Sintra forum that inflation risks had eased
- South Korea’s Kospi sank 7.9% on renewed AI chip demand worries, but crypto shrugged it off
- Friday’s US jobs report is now the key catalyst for bitcoin’s next move
Bitcoin price surges above $61,000, and it did so in dramatic fashion. The asset rallied over 4% in 24 hours, marking its strongest level in more than a week after tumbling to as low as $58,200 just days earlier.
The spark came straight from the Federal Reserve. Chair Kevin Warsh told attendees at the European Central Bank’s forum in Sintra, Portugal, that inflation risks had come down, his softest comment since a hawkish June rate outlook triggered weeks of outflows from US bitcoin ETFs. Traders read the remarks as a signal that the central bank may be edging away from further tightening, and bitcoin responded almost instantly.
What makes the rally notable is the backdrop it happened against. Tech stocks had a rough day globally, with South Korea’s Kospi index plunging 7.9% after Samsung Electronics and SK Hynix lost a combined $290 billion in market value on fresh fears about AI chip demand. It was the second time this month the index buckled under AI-related jitters.
Meta added fuel to the unease, announcing plans to sell off spare computing power to outside customers, a move that reignited questions over whether the AI infrastructure buildout has outpaced actual demand.
Despite the equity turmoil, crypto held firm. That divergence stood out after a quarter in which capital had been steadily rotating out of digital assets and into AI-linked trades. As bitcoin price surges above $61,000, it’s showing a rare bit of independent strength.
Not everyone is convinced the worst is over. FxPro chief market analyst Alex Kuptsikevich warned earlier this week, when bitcoin was still stuck below $60,000, that the market was in a “dangerous consolidation,” flagging $40,000 as the next real support if the floor gave way. Thursday’s bounce buys some breathing room, but one strong session doesn’t erase a rough first half of the year.
All eyes now turn to Friday’s US jobs report, widely seen as the next major swing factor for markets. A strong payrolls number would likely give the Fed cover to stay restrictive, while a weaker print could revive bets on rate cuts, either way, setting the tone for how bitcoin and broader crypto markets trade through July.
