Rate Cut Speculation Fuels Crypto Equity Rally, with Circle, Coinbase, Strategy Outperforming

Crypto Stocks Rally as Powell Hints at September Rate Cut

Crypto-linked equities surged Friday after Federal Reserve Chair Jerome Powell signaled a potential shift in monetary policy, suggesting interest rate cuts could begin as early as September.

The remarks, delivered during the Kansas City Fed’s annual Jackson Hole symposium, marked a notable pivot from previous Fed communications, which had emphasized a cautious approach despite persistent inflation concerns.

“The balance of risks appears to be shifting,” Powell said, noting that while headline labor data remains stable, there are underlying signs of a cooling job market. “It is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers.”

Markets quickly responded. Bitcoin (BTC) rose to $114,854, with ether (ETH) also posting gains. Broader equity indices like the S&P 500 and Nasdaq moved higher as well, though the sharpest gains were seen in crypto-exposed names.

Top Performers:

Circle (CRCL) jumped 7%, leading the sector.
eToro (ETOR) and Marathon Digital (MARA) followed with 6% gains.
Coinbase (COIN) advanced 5%, while MicroStrategy (MSTR) rose 4% on the back of its significant bitcoin treasury.
Robinhood (HOOD) added 3%.

The market’s reaction highlighted the continued sensitivity of digital assets and related stocks to shifts in monetary policy. Lower interest rates generally reduce the cost of capital and enhance the appeal of risk-on assets, including cryptocurrencies.

Investors had grown increasingly doubtful about a September cut, especially after stronger-than-expected economic data earlier in the month. Powell’s latest remarks appear to have reignited optimism, placing rate cut hopes back in focus.

While cautioning that inflation risks persist, Powell’s comments provided reassurance that the Fed may be preparing to pivot — but not in haste.