Crypto Stocks Jump as Powell Opens Door to September Rate Cut
Crypto-related equities and digital assets surged on Friday after Federal Reserve Chair Jerome Powell signaled the central bank could begin cutting interest rates as early as next month.
Speaking at the Kansas City Fed’s annual Jackson Hole symposium, Powell suggested a shift in the policy outlook, a change from recent messaging that had left investors uncertain about near-term rate cuts.
“The balance of risks appears to be shifting,” Powell said, acknowledging that while labor market data remains stable on the surface, there are signs of weakening. “It’s a curious kind of balance that results from a marked slowing in both the supply of and demand for workers.”
The speech sent risk assets sharply higher. Bitcoin (BTC) climbed to $114,854, with ether (ETH) also rising. The S&P 500 and Nasdaq gained, but crypto-linked stocks saw some of the most notable moves of the session.
Sector Highlights:
- Circle (CRCL) led gains with a 7% rise.
- eToro (ETOR) and Marathon Digital (MARA) followed, each up 6%.
- Coinbase (COIN) added 5%, while MicroStrategy (MSTR) rose 4%.
- Robinhood (HOOD) gained 3%.
The sharp rally underscored how closely crypto markets remain tied to monetary policy expectations. Lower interest rates typically encourage risk-taking and increase the appeal of speculative assets such as cryptocurrencies.
Although Powell reiterated concerns about inflation and lingering labor market risks, his tone was notably less hawkish. Markets had recently priced in a lower chance of a September cut amid stronger economic data. His comments, however, helped restore confidence that a policy shift may be imminent.
U.S. President Donald Trump has continued pressing the Fed for looser policy, but Powell made clear the central bank will remain data-dependent.
Still, Friday’s remarks have revived market hopes that a September rate cut is back on the table.
