Bitcoin rebounded above $60,000 on Wednesday after comments from U.S. Federal Reserve Chair Kevin Warsh on persistent inflation, but analysts remain divided over whether the rally marks the start of a sustained recovery or a temporary bull trap.

The world’s largest cryptocurrency gained despite growing expectations that the Federal Reserve could keep interest rates higher for longer. Markets are increasingly pricing in the possibility of a rate hike by September, boosting U.S. Treasury yields and strengthening the dollar.

Higher bond yields and a stronger U.S. dollar typically reduce investor appetite for non-yielding assets such as Bitcoin and gold. At the same time, continued strength in artificial intelligence-related stocks has attracted capital away from cryptocurrencies.

Another headwind for Bitcoin is the ongoing outflow from U.S. spot Bitcoin exchange-traded funds (ETFs), signaling weaker institutional demand. Analysts say persistent ETF withdrawals could make it difficult for Bitcoin to sustain a rally toward the $65,000 level in the near term.

While Bitcoin has recovered above the key $60,000 mark, market participants remain cautious as macroeconomic uncertainty, monetary policy expectations, and institutional investment flows continue to shape price direction.