Bitcoin rose back above $60,000 after Federal Reserve Chairman Kevin Warsh refused to indicate the direction of future interest rate decisions during the European Central Bank’s policy discussion.
summary
- Bitcoin rebounded above $60,000 after Federal Reserve Chairman Kevin Warsh refused to indicate the future path of interest rates.
- CME FedWatch shows that markets still expect interest rates to remain unchanged in July despite persistent concerns about inflation.
- Polymarket continues to price in the opportunity for a rate hike in 2026, while Morgan Stanley expects interest rates to remain steady this year.
According to data from crypto.news, Bitcoin (Bitcoin) was trading at around $60,175 at the time of writing after bouncing around 3% from the intraday low below the key level of $58,000. The move followed comments from Warsh, who once again avoided providing advance guidance on monetary policy while emphasizing that future decisions would depend on incoming economic data.
Bitcoin rebounds while avoiding policy signals
Speaking during an ECB Forum panel, Warsh declined to say whether the Fed would raise interest rates at the Federal Open Market Committee meeting in July. Instead, he reiterated the position he adopted after taking office that the central bank would not pre-commit future policy moves and would continue to respond to economic data as it becomes available.
His comments came as traders largely continued to expect no change in interest rates later this month. According to CME FedWatch data, markets are currently pricing in a 70.6% probability that the Fed will leave interest rates unchanged at the FOMC meeting in July.
Warsh also touched on inflation, saying that expectations declined during the first four weeks of the recent period despite concerns related to the US-Iranian conflict. He added that inflation risks have eased while reaffirming the Fed’s commitment to bring inflation back to its 2% target.
Such as crypto.news I mentioned After the Federal Open Market Committee met in June, Warsh also left interest rates unchanged at that meeting. Bitcoin fell to around $65,430 following the decision, while Ethereum traded near $1,770. The Fed’s updated forecasts at the time showed that nine policymakers expected at least one interest rate increase before the end of the year.
These expectations have continued to shape market expectations even after Warsh reiterated at the ECB forum that future policy decisions will depend on incoming economic data.
Expectations of interest rate hikes continue to pressure cryptocurrencies
Although traders see little chance of a rate hike in July, expectations of additional tightening later this year have not gone away. According to Polymarket data, there is currently a 54% chance that the Fed will raise interest rates before the end of 2026.
Higher borrowing costs have generally remained a headwind for cryptocurrencies because higher interest rates tend to support demand for cash and short-term fixed income assets over riskier investments like Bitcoin.
sporadic Preparing reports Crypto.news also noted that Morgan Stanley expects the Fed to keep interest rates unchanged through the rest of the year. However, the bank warned that interest rate hikes may return if inflation remains persistent or if the unemployment rate falls further.
Outside of monetary policy, another source of uncertainty for Bitcoin has come from corporate supply. As previously reported by crypto.news, this strategy has the potential to be… Can be sold As much as $1.25 billion worth of Bitcoin remained a contributing factor to the selling pressure in the market.
Political attention also remained focused on Federal Reserve policy. Before Warsh became president, President Donald Trump He called again and again to low interest rates. However, after the June decision to keep interest rates unchanged, Trump responded without strong criticism and continued to praise the new Fed chairman while not providing a timeline for future interest rate cuts.
