Bitcoin soars past $60K as Fed chair eases inflation fears

Bitcoin reclaimed $60,000 after Fed Chair Warsh signaled easing inflation risks and avoided rate guidance, sparking a rebound in risk assets and precious metals.

Bitcoin surged past the $60,000 mark after Federal Reserve Chair Kevin Warsh stated that inflation risks had eased and reaffirmed the central bank's commitment to a 2% inflation target during a panel at the ECB Forum in Sintra, Portugal. Warsh avoided providing forward guidance on future interest rate decisions, emphasizing that policy would depend on incoming economic data. His less hawkish tone, especially regarding artificial intelligence's impact on productivity and inflation, was seen by markets as a sign of stability. This prompted a swift rebound in Bitcoin, with its price recovering from recent lows near $58,000 and its market capitalization exceeding $1.2 trillion. Despite the rally, market sentiment remains cautious, as continued outflows from Bitcoin ETFs and a low Fear & Greed Index indicate.