Bitcoin Surges Past $60,000 as Fed Eases Inflation Worries
On Wednesday, the price of bitcoin climbed beyond $60,000, regaining a level it had lost due to recent volatility. This increase came after Federal Reserve Chair Kevin Warsh said at a central bank event that the threat of ongoing inflation had diminished. The cryptocurrency was trading around $60,171 this afternoon, reflecting an increase of approximately 2.7% for the day. The asset achieved a 24-hour peak of $60,474 before experiencing a decline to a low of $57,718. Trading volume for the session reached an impressive $26.68 billion. Warsh, addressing the European Central Bank forum in Sintra, Portugal, highlighted that inflation expectations indicated by surveys and bond prices have begun to show signs of moderation. He coupled the observation with a caution that price growth remains excessively high and that the Fed will not tolerate inflation surpassing its 2 percent target.
“We’re going to deliver price stability,” Warsh stated. Markets viewed the balance as a move towards relief. Bitcoin experienced a rise as U.S. stocks advanced and the dollar retreated from its weekly high. A weaker dollar frequently enhances interest in Bitcoin and a range of risk assets. The move provided a much-needed respite in a challenging year. Bitcoin is currently hovering around 30% below its starting point for 2026, sitting more than $66,000 under its all-time high of $126,277. This ongoing decline further solidifies the prevailing bear-market narrative. Its market value hovers around $1.2 trillion. Strategy and Strive saw notable volatility, with prices soaring more than 10% at certain points throughout intraday trading. Bitcoin treasury companies reported more significant gains.
Strategy, the software firm that has transitioned into a Bitcoin holder under the leadership of Michael Saylor, experienced a notable increase of nearly 7.5% on the day, reaching peaks of 13% at certain points throughout the day. Strive experienced a notable surge, climbing over 10% at times and hitting a peak of $12.02. Both function as leveraged proxies for Bitcoin, with their fluctuations frequently exceeding those of the cryptocurrency itself. Strive has committed 2026 to building a treasury that now boasts more than 16,000 BTC, with the stock experiencing a remarkable increase of over 100% in just three months. Earlier this week, Strategy unveiled a new Digital Credit Capital Framework that increased the dividend on its STRC preferred shares to 12%, authorised up to $2 billion in share buybacks, and established a bitcoin monetisation program permitting limited BTC sales for designated corporate purposes.
The company has established a significant reserve of $2.55 billion U.S. dollars, designed to guarantee coverage for preferred dividends and debt interest. Board regulations stipulate that this reserve must consistently uphold a minimum of 12 months of coverage. Strategy indicated that any bitcoin sales would be limited to replenishing reserves, funding dividends, and covering interest when more advantageous than issuing equity or financing stock buybacks, while reaffirming bitcoin as its primary treasury asset.
