Bitcoin climbed back above $60,000 after Fed Chair Kevin Warsh said inflation risks have declined, offering a reprieve from June's relentless selling.
Back
Bitcoin climbs toward $60,000 as Warsh says inflation risks have eased
Bitcoin rose 1.7% to $60,273 on Wednesday after Fed Chair Kevin Warsh said inflation risks have come down, easing pressure on the worst-hit corner of the risk-asset market.
"Warsh's acknowledgment that inflation risks have moderated is the first dovish signal from this Fed," said Nina Volkov, crypto macro analyst at Edgen. "It gives Bitcoin room to breathe after a brutal June."
The recovery comes after a punishing stretch. US spot Bitcoin ETFs posted $4.06 billion in net outflows in June, the largest monthly withdrawal since the funds launched in January 2024 and 14% above the prior record of $3.56 billion set in February 2025, according to SoSoValue data. BlackRock's iShares Bitcoin Trust alone absorbed roughly $860 million in exits during one reported week. Total ETF assets have fallen to about $72.8 billion from a peak above $100 billion.
Whether the rally holds depends on whether Warsh's tone shift translates into actual policy breathing room. Markets still price a greater than 60% chance of a September rate hike, and the dollar index has risen 2.8% in June alone, historically a headwind for Bitcoin. Bulls need a sustained close above $60,000 to prevent a retest of the $58,000 level that nearly broke last week.
$4.06 Billion in ETF Outflows Tell the Real Story
The June exodus from spot Bitcoin ETFs marks the worst month for the product category since its inception. The selling accelerated through late May, with 13 consecutive days of net outflows from May 15 through June 3 totaling roughly $4.4 billion, according to SoSoValue data cited by Crypto Briefing. For the week ending June 26 alone, investors pulled $1.79 billion.
On-chain data suggests a different cohort is moving the other direction. Transactions worth more than $100,000 and $1 million surged after Bitcoin briefly traded below $60,000, indicating whale accumulation during the selloff, per Glassnode data. The firm's Accumulation Trend Score reached its maximum reading of 1, signaling large holders have rotated from distribution to active accumulation.
The Debasement Trade Unravels — and Rebuilds
Gold fell below $4,000 an ounce for the first time in seven months and silver broke below $60 as the strengthening dollar crushed the so-called debasement trade that had lifted scarce assets earlier this year, according to FactSet data. The ICE US Dollar Index rose 2.8% in June, on pace for its largest monthly advance in nearly a year.
Grayscale Research said Bitcoin's next major move could depend on several catalysts, including future Fed decisions, progress on the CLARITY Act in the US Senate, and developments surrounding Strategy's balance sheet after concerns over its leveraged Bitcoin acquisition model. Despite the correction, Grayscale said long-term fundamentals remain intact, pointing to continued institutional adoption, expanding stablecoin use, and growing tokenization of real-world assets.
This article is for informational purposes only and does not constitute investment advice.
[1] Bitcoin climbs toward $60,000 after Fed Chair Warsh said inflation risks has come down[2] Bitcoin holds above $60,000 as ETF outflows, Fed outlook weigh on sentiment By...[3] Bitcoin nearly loses $58K as ETF outflows decide whether inflation relief holds[4] Bitcoin ETF outflows cross record $4 billion in June[5] Gold, silver and bitcoin are getting rocked, and angry investors can blame Kevin...
