While Asian tech giants tumbled amid growing doubts over AI chip demand, Bitcoin decisively cleared the $61,000 threshold. The cryptocurrency climbed roughly 4% over the last 24 hours, rebounding from a recent dip to $58,200. This rally appears driven less by AI-related excitement and more by an unexpectedly dovish shift in tone from the U.S. Federal Reserve.
Speaking at the European Central Bank forum in Sintra, Fed Chair Kevin Warsh suggested that inflationary risks appear to have subsided. His comments marked a notable softening from June’s hawkish outlook, which had previously triggered outflows from U.S. Bitcoin ETFs. Investors seemingly interpreted Warsh’s remarks as a sign that restrictive monetary policy may not persist for as long as feared. Consequently, Bitcoin decoupled from the slumping equity markets, demonstrating relative strength.
In a striking contrast, South Korea’s Kospi index plunged 7.9% as Samsung and SK Hynix saw a combined $290 billion wiped off their market value due to fears of an AI chip oversupply. Meanwhile, Meta announced it would begin selling excess computing power to third-party clients. These developments underscore the diverging reactions of traditional markets and crypto to identical macroeconomic signals.
Analysts warn that the current rebound has only modestly distanced Bitcoin from critical support levels. If Friday’s U.S. jobs report proves strong, the Fed may find reason to maintain its hawkish rhetoric; conversely, weak data would bolster expectations for rate cuts. Regardless of the outcome, this report is set to dictate the market tone for the rest of July.
Like water, money always seeks the path of least resistance. When central banks hint at potential easing, capital flows toward assets where inflation expectations are already priced in—making Bitcoin one of the most sensitive indicators in this regard. Investors should keep in mind that behind every such move lies not just a technical bounce, but a reassessment of long-term rates and risks.
The upcoming U.S. labor market report will determine whether this momentum sustains or if Bitcoin retreats once more to the $58,000–$60,000 range.
