Market Bets on Fed Easing Drive Crypto Stocks Higher; Circle, Coinbase Among Top Gainers

Crypto Stocks Rally as Powell Opens Door to September Rate Cut

Crypto-linked equities and digital assets surged on Friday after Federal Reserve Chair Jerome Powell signaled a possible shift in monetary policy, suggesting that interest rates could be cut as soon as September.

Speaking at the Kansas City Fed’s annual Jackson Hole Symposium, Powell said the balance of economic risks may now favor a policy adjustment. While he acknowledged that inflation remains a concern, he also noted that labor market dynamics are showing signs of strain.

“It is a curious kind of balance,” Powell said, “marked by a significant slowdown in both labor supply and demand.”

His comments marked a notable shift from the Fed’s previously cautious tone and helped reignite optimism across risk markets.

Crypto Market Reaction
Bitcoin (BTC) climbed to $114,854, with ether (ETH) also gaining. Equities rallied, particularly crypto-related stocks, which posted outsized gains:

• Circle (CRCL): +7%
• eToro (ETOR): +6%
• Marathon Digital (MARA): +6%
• Coinbase (COIN): +5%
• MicroStrategy (MSTR): +4%
• Robinhood (HOOD): +3%

The rally underscored how closely digital assets are tracking expectations for Fed policy. Lower rates typically ease financial conditions, boost liquidity, and make speculative investments like crypto more attractive.

Backdrop: Market Doubt Turning to Optimism
Just days ago, markets had largely discounted the possibility of a September rate cut after stronger-than-expected economic data. But Powell’s comments on Friday appeared to reset those expectations.

Though he stopped short of making a firm commitment, Powell’s language suggested growing Fed openness to adjusting rates sooner rather than later, especially if job market data continues to soften.

President Donald Trump has repeatedly pushed for lower interest rates, but Powell emphasized that any decisions would remain data-dependent.