Bitcoin experienced a rise of over 4%, trading above $61,000, marking its highest point in more than a week after Federal Reserve Chair Kevin Warsh indicated that inflation risks have diminished. This surge came despite a 7.9% decline in South Korea's Kospi index due to renewed fears regarding AI chip demand.
By Shaurya Malwa Jul 2, 2026, 10:30 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- Bitcoin's price climbed above $61,000 after Federal Reserve Chair Kevin Warsh's remarks suggested a decrease in inflation risks, alleviating fears of a more aggressive monetary policy.
- This increase in the cryptocurrency's value occurred amidst a significant sell-off in technology stocks, highlighted by a nearly 8% drop in South Korea’s Kospi index due to renewed concerns over AI chip demand.
- Analysts caution that while bitcoin's rebound is notable, it still remains close to crucial support levels, with the upcoming U.S. jobs report likely to influence interest rate expectations and market trends for July.
On Thursday, Bitcoin surged past $61,000, reflecting a 4.1% increase over the previous 24 hours, according to CoinDesk data. This marks its strongest position this week following a decline that saw it drop to $58,200.
The upward movement was attributed to comments made by Federal Reserve Chair Kevin Warsh at a European Central Bank forum in Sintra, Portugal, where he indicated that inflation risks had lessened. This statement represents a notable shift from the hawkish tone observed in June, which had led to significant outflows from U.S. bitcoin exchange-traded funds.
This performance was particularly striking given the broader negative trends in the technology sector.
The Kospi index of South Korea plummeted 7.9% on Thursday after major losses of $290 billion in market capitalization by Samsung Electronics and SK Hynix, marking the second instance this month where the index experienced a downturn due to concerns surrounding AI chip demand, as reported by Bloomberg.
Meta's announcement to sell excess computing power to external clients further fueled concerns about whether the current demand for AI infrastructure is sustainable.
In contrast, the cryptocurrency market showed resilience. Despite the pressure on Asian equities from the chip sell-off, Bitcoin maintained its upward trajectory, showcasing a relative strength that has been lacking during a period where funds have been shifting from crypto to AI investments.
FxPro chief market analyst Alex Kuptsikevich noted earlier this week that the consolidation phase for bulls is precarious, highlighting that if Bitcoin fell below $60,000, the next major support level could be around $40,000. However, Thursday's rise above $61,000 provides some distance from that potential drop, though one strong trading day does not negate the losses sustained in the first half of the year.
Looking ahead, Friday's U.S. jobs report will be a critical factor. A robust jobs report could give the Fed justification to maintain a restrictive stance, while a weak report might reignite speculation about interest rate cuts. Regardless of the outcome, it will set the tone for the month of July.
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