Bitcoin Climbs Back Above $61,100 Amid Dollar Slide and Fed Rate Signals
Bitcoin climbed back above $61,100, gaining around 4% on the day, after Fed Governor Warsh signaled easing inflation risks at the ECB forum in Sintra. Traders are now eyeing Friday's U.S. jobs report as the next key macro catalyst.
Bitcoin recovered to trade above $61,100 on Thursday, gaining roughly 4% on the day, according to CoinDesk data, as a softer tone from a Federal Reserve official weighed on the U.S. dollar and pushed traders toward risk assets.
Fed Governor Kevin Warsh addressed the ECB forum in Sintra, stating that inflation risks have diminished — marking the first notably dovish signal from him since the hawkish June dot plot triggered weeks of outflows from Bitcoin exchange-traded funds. The dollar slid in response, and U.S. Treasury yields wavered, providing a supportive backdrop for crypto markets.
The recovery in Bitcoin came against a backdrop of fresh turbulence in global equity markets. South Korea's Kospi index fell 7.9% on Thursday after Samsung and SK Hynix lost a combined $290 billion in market capitalization, representing the second major selloff this month driven by concerns over artificial intelligence chip demand.
Meta separately disclosed plans to sell surplus computing power to external customers, reigniting questions about whether the AI infrastructure buildout has outpaced actual demand — the same uncertainty that rattled tech stocks two weeks prior, now resurfacing under a different headline.
Bitcoin's price action diverged from the AI-driven equity selloff, instead tracking the macro rate narrative more closely. The divergence underscores the asset's sensitivity to Federal Reserve policy expectations over near-term tech sector sentiment.
Market participants are now focused on Friday's U.S. nonfarm payrolls report as the next major catalyst. A strong jobs print would give the Federal Reserve justification to maintain its restrictive policy stance, while a weaker reading could revive expectations for interest rate cuts and boost risk appetite.
The July outlook carries additional weight for Bitcoin traders. The first half of the year ended with a rare year-to-date loss for Bitcoin, placing the asset firmly in bear market territory and making the coming weeks a closely watched period for any signs of trend reversal.
