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Ether, solana, dogecoin in the green after Warsh comments push bitcoin above $60,000
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- DeepHorus
Bitcoin climbed back above $60,000 for the first time in over a week after Federal Reserve Chair Kevin Warsh said inflation risks had eased, offering the cryptocurrency market its first clear boost in weeks. Speaking at the European Central Bank's annual forum in Sintra, Portugal, on Wednesday, Warsh stated that 'inflation risks have come down' while reaffirming the Fed's commitment to returning inflation to 2%. He declined to signal the central bank's next move, saying policymakers would weigh incoming data first. Bitcoin pared earlier losses and pushed past $60,000 following the remarks, according to CoinDesk reporting.
The broader crypto market saw mixed movements, with Solana leading major tokens. Solana rose about 4% on the day to around $78 and posted a roughly 16% gain over the past week, making it the only large token with a meaningful weekly increase. Ether traded near $1,630, up about 3% on the day, while XRP held at about $1.06. BNB, dogecoin, and Tron were softer over the week. The positive sentiment came as Warsh's comments eased fears of prolonged tight monetary policy.
The bigger move, however, occurred in equity markets. A sharp sell-off in semiconductor and AI-related stocks spread to South Korea on Thursday, where the Kospi index fell almost 7% before paring losses. Samsung Electronics and SK Hynix each dropped more than 6%, and Japan's Kioxia fell 13% after a rally that had lifted the stock more than 650% this year. The declines revived worries that this year's blistering run in AI stocks had outpaced reality.
Two reports fueled the unease. Bloomberg reported that Meta is building a cloud business to sell access to spare AI computing power, raising concerns that the company had overbuilt. Meanwhile, Apple is in talks to buy chips from two Chinese semiconductor makers, a move that would hurt Korean suppliers. These developments dented the AI trade, which has pulled significant capital away from cryptocurrencies throughout the second quarter.
The AI trade is where money has flowed all quarter while bitcoin fell, giving the asset a rare back-to-back quarterly loss for only the third time in history. Capital rotated steadily into chipmakers and AI infrastructure as crypto closed a losing first half. With cracks appearing in the AI sector, some analysts speculate that money could rotate back into bitcoin and other risk assets, potentially reversing the trend.
Elsewhere in markets, Brent crude fell to about $70.60 a barrel, its lowest since late February before the Middle East war began, as traffic through the Strait of Hormuz recovered. Gold rose for a second day to trade above $4,060 an ounce after Warsh's comments, and the dollar steadied after two days of gains. The mixed signals highlight ongoing uncertainty across asset classes.
Whether bitcoin's reclaim of $60,000 holds depends on whether the AI wobble deepens into a sustained rotation back toward risk or proves a one-day scare. For now, the crypto market remains cautiously optimistic, with traders eyeing further Fed commentary and upcoming economic data. The interplay between AI stock volatility and cryptocurrency flows will likely determine the next leg for digital assets.
