On July 1, new Federal Reserve Chair Kevin Warsh told a European central bank panel that “inflation risks have come down.”

That single line sent the crypto market scrambling. Bitcoin (BTC +0.36%) reclaimed $60,000 more or less immediately, and the entire sector bumped upward.

But before treating Warsh’s statement as the pivot out of the bear market that crypto has been waiting for, let’s unpack the broader context of the comment and determine whether it’s worth changing your portfolio’s positioning.

Image source: Getty Images.

Read the fine print carefully here

Warsh spoke at the European Central Bank’s (ECB) annual Sintra, Portugal, forum alongside ECB President Christine Lagarde. He explicitly declined to offer any insight regarding…