Crypto Stocks Surge as Powell Signals September Rate Cut
Digital assets and crypto-related stocks rallied sharply on Friday after Federal Reserve Chair Jerome Powell indicated that interest rate cuts could begin as early as September.
The shift in tone—delivered during Powell’s remarks at the Jackson Hole Economic Symposium—marked a departure from recent hawkish rhetoric, reviving hopes across risk markets.
“The balance of risks appears to be shifting,” Powell said, noting that while the job market remains stable on the surface, both labor supply and demand have slowed significantly.
The market reaction was immediate. Bitcoin rose to $114,854, while ether also pushed higher. Equities gained broadly, with crypto stocks leading the charge:
- Circle (CRCL): +7%
- eToro (ETOR) and Marathon Digital (MARA): +6%
- Coinbase (COIN): +5%
- MicroStrategy (MSTR): +4%
- Robinhood (HOOD): +3%
The strong moves highlighted how sensitive digital assets remain to shifts in monetary policy. Lower interest rates typically support risk appetite, making speculative assets more attractive.
Despite caution around inflation and employment data, Powell’s comments reintroduced the possibility of near-term easing—something investors had started to discount after strong economic prints. His balanced messaging helped restore confidence that the Fed could pivot if data continues to soften.
President Donald Trump has repeatedly called for rate cuts, though Powell reaffirmed the Fed’s commitment to data-driven decisions.
With September now back in play, all eyes will be on incoming economic data for further confirmation.
