Bitcoin climbed above the $60,000 threshold for the first time in weeks, jumping after Federal Reserve Chair Kevin Warsh stated that inflation risks have come down. The cryptocurrency rallied sharply in afternoon trading following the remarks, which traders interpreted as a signal that the central bank may slow or pause its tightening cycle.
Warsh, speaking at a conference, reiterated the Fed's commitment to its 2% inflation target. He also noted that artificial intelligence could reshape the economy and monetary policy, though he offered no specific timeline or policy shift. The comments boosted risk appetite across markets, with bitcoin leading the charge among digital assets.
Other cryptocurrencies followed bitcoin higher, with ether and solana also posting gains. The broader crypto market capitalization added roughly $50 billion in the hours after the speech. Equity markets saw a more muted reaction, with the S&P 500 edging up 0.3% as traders focused on the Fed's next move.
Some analysts cautioned that the rally may be overdone. They noted that Warsh did not commit to any rate cuts and that inflation remains above the Fed's target. Without a clear pivot in policy, the move could prove short-lived if economic data disappoints.