Bitcoin surged more than 4% to reclaim the $61,000 mark, its strongest level in over a week, after Federal Reserve Chair Kevin Warsh signaled that inflation risks had softened. The move came despite a 7.9% plunge in South Korea's Kospi fueled by renewed AI chip worries, which did little to dampen crypto appetite.
On-chain data from Glassnode and Bitfinex reveals what analysts describe as "accumulation beneath the surface," with long-term holders steadily adding to their positions even as spot Bitcoin ETFs continue to see net outflows. This divergence suggests a bullish structural shift, as patient capital absorbs supply that short-term traders and ETF sellers are releasing.
Warsh's comments mark a notable pivot in Fed rhetoric, reinforcing expectations that the central bank may ease its tightening stance later this year. The regulatory backdrop remains uncertain, however, with the SEC still weighing multiple spot ETF applications and the CFTC grappling with how to classify certain digital assets.
Bitcoin's market capitalization now sits at roughly $1.2 trillion, representing about 48% of the total crypto market. Its correlation with the S&P 500 has eased slightly, but the token remains sensitive to macro signals—today's rally was powered more by rate expectations than by any crypto-specific catalyst.
Some analysts caution that ETF outflows, if sustained, could cap further gains. The $61,000 level has acted as resistance before, and a failure to hold it might invite renewed selling. Long-term holders appear confident, but the broader macro picture—including AI-driven equity volatility—remains a wild card.