Bitcoin Price Outlook After Remarks From Fed’s Warsh

Bitcoin price climbed above $61,000 on Thursday after traders reacted to softer remarks from Fed Chair Kevin Warsh. The move followed a sharp rebound from a 21-month low reached earlier during the week.

BTC rose 4.21% in 24 hours to $61,147.29, outperforming the broader market’s 3.36% gain. The broader crypto market was also up 3.06% to 2.11 trillion as risk appetite rose.

Bitcoin Price Climbs Above $61,000 After Dovish Fed Remarks

Bitcoin was bolstered when Warsh was quoted saying inflation risks were reduced during the ECB forum panel.

His remarks diminished the apprehension that the Fed might continue with an aggressive policy amid the weakening of markets.

But Warsh did not want to provide ahead guidance until the next policy meeting of the central bank.

He indicated that authorities would examine the data coming in and then determine the next course of action regarding their monetary policy. Such a message continued keeping traders on CPI data and subsequent Fed communication this month.

In the case of Bitcoin, the use of softer inflation language contributed to supporting demand following a challenging June. Nevertheless, it might take traders more assurance to consider this rebound as a larger trend change.

Fed Inflation Comments Boost Risk Appetite Across Crypto Market

The Fed remarks contributed to the improvement of risk appetite in crypto and other rate-sensitive assets. Fears of tightening financial conditions abated in the markets, forcing investors back to key tokens

Solana price was in the lead of major assets, surging by 7% on the day to $78. The token also surged about 15% in the last week as buyers came back.

Ether price was trading around $1,630 following an increase of 4% within the same trading session. Meanwhile, XRP remained around $1.06 as the state of the wider crypto market stabilized. BNB, Dogecoin, and Cardano continued to be less robust throughout the week even as the market recovered.

US-Iran Talks Add Support as Bitcoin Extends Market Recovery

Geopolitical mood was also bettered as the news reported of indirect US-Iran negotiations progress. The Foreign Ministry of Qatar reported that the two parties achieved positive developments in their talks in Doha.

The negotiations centred on matters related to the June ceasefire memorandum, as per the update. That action contributed to alleviating the market fears and providing an extra cushion to risky assets.

Bitcoin was fortunate to have softer Fed language and a calmer geopolitical environment. Traders, however, are still concerned on whether future data will validate the inflation slowdown.

BTC Open Interest Rises 7% as Traders Return to Derivatives Market

Bitcoin derivatives trading grew with a 25.27% rise in trading up to $83.57 billion in traded markets. Open interest also increased 7% to $47.68 billion with more active market positions. Meanwhile, options volume jumped 30.36% to $3.50 billion, marking the strongest percentage move. 

The open interest of options increased to 2.19% to 26.97 billion, indicating a consistent positioning demand. In general, the statistics indicate that traders are reconstructing exposure, and liquidity is enhancing in broader Bitcoin derivatives markets.

Will BTC Price Recover More Ahead as Bulls Target $62K Breakout?

As of the reporting, the BTC price traded near $61,226 on four-hour chart. Bitcoin price recovered from the $58,000 area after buyers defended the lower trendline in the rising channel.

The recovery pushed the price up to more than $60,000 and the MACD also shifted to the positive. Nonetheless, the first critical resistance of bulls is at the level of $62,000.

A clean four-hour close above $62,000 could open the path toward $63,000 and $64,000. With an improvement in momentum, the future Bitcoin outlook can re-test the recent wick zone around $65,000.

On the downside, $60,000 is now the key level to hold. Any step lower than that would put us at a focus of $59,000. The additional weakness will reveal the support area of 58,000 once again.