Bitcoin advanced after Fed Chair Kevin Warsh indicated that inflation risks had eased, boosting sentiment even as global equities weakened. A 7.9% slide in South Korea’s Kospi, fueled by renewed concerns over AI chip valuations, had limited impact on crypto markets.

Bitcoin moved back above $61,000 on Thursday, rising about 4.1% over 24 hours, according to CoinDesk data. The rebound marked its strongest level of the week after an earlier pullback had driven prices to roughly $58,200.

The rally followed Warsh’s remarks at the ECB forum in Sintra, Portugal, where he said inflation pressures had eased. The comments represented a softer tone compared with his earlier hawkish June outlook, which had contributed to several weeks of outflows from U.S. bitcoin ETFs.

Crypto’s strength came against a backdrop of sharp losses in equities. South Korea’s Kospi fell 7.9% after Samsung Electronics and SK Hynix lost a combined $290 billion in market value, extending volatility in AI-linked chip stocks, Bloomberg reported.

Sentiment in tech was further pressured after Meta reportedly moved to sell excess computing capacity to external clients, reviving questions over whether AI infrastructure spending is running ahead of real demand.

Even as equities sold off, bitcoin held its gains, showing relative strength amid a broader market rotation toward AI-related trades in recent months.

“This is a rather dangerous consolidation for the bulls,” FxPro’s Alex Kuptsikevich said earlier in the week, warning that a breakdown could open the way toward $40,000 as key support. The move above $61,000 offers short-term relief, though the wider trend remains fragile.

Investors now await Friday’s U.S. jobs report, which could shape Federal Reserve expectations. A strong reading may reinforce a restrictive stance, while softer data could revive rate-cut bets heading into July.