Bitcoin's price surged by over 4% to surpass $61,000, reaching its highest level in over a week, following comments from Federal Reserve Chair Kevin Warsh indicating that inflation risks have lessened. This rise occurred despite a notable downturn in South Korea's Kospi index, which fell by 7.9% due to renewed worries about AI chip demand.
On Thursday, Bitcoin's value climbed to $61,175, reflecting a 4.1% increase over the previous day, as reported by CoinDesk. This rebound follows a dip to $58,200 earlier in the week.
The positive shift in Bitcoin's price was largely attributed to Warsh's remarks at a European Central Bank forum in Sintra, Portugal, where he suggested that inflationary pressures were easing. This marked a departure from the previous hawkish sentiment that had led to significant outflows from U.S. bitcoin exchange-traded funds in June.
While Bitcoin demonstrated resilience amid a broader sell-off in technology stocks, with the Kospi index experiencing substantial losses driven by major firms like Samsung Electronics and SK Hynix, the cryptocurrency maintained its upward momentum. Concerns about sustainable demand for AI infrastructure were amplified following Meta's announcement to sell excess computing power.
