Bitcoin stabilizes at $82,200 as Fed's Warsh signals steady rates

Bitcoin held above $80,000 as South Korean tech stocks rebounded from a recent sell‑off, while traders cut their expectations for a Federal Reserve rate hike after comments from Fed official Sarah Warsh. The digital asset closed the day at $82,200, steady after a dip earlier in the week. Korean shares rose 1.5% on the KOSPI, led by major semiconductor names. Warsh’s remarks suggested the Fed may keep rates steady for longer than some had feared.

Crypto markets have become increasingly sensitive to U.S. monetary policy, because higher rates can pull capital away from riskier assets. South Korea’s tech sector is a barometer for global technology demand, and a recovery there can lift investor sentiment worldwide. Warsh’s comments came after the Fed’s latest inflation data, which showed a slowdown in price growth, giving the central bank more room to pause.

Bitcoin’s price volatility dropped from a 10% swing last week to just 4% over the past 24 hours, with trading volume topping $3.5 billion. The KOSPI index closed at 3,150 points, up from 3,080, driven by gains in Samsung Electronics and SK Hynix. Analysts note that traders are now pricing in a 15% chance of a rate hike at the next Fed meeting, down from 35% earlier. The shift in expectations is reflected in the yield curve flattening across U.S. Treasuries.

Looking ahead, the Fed will announce its policy stance at the June 5 meeting, and markets will watch for any signals that could shift the risk appetite again. If rates stay unchanged, Bitcoin may continue to trade in the $