Crypto Stocks Surge on Powell's Rate Cut Signal as Fed Policy Shift Fuels Optimism

Crypto stocks and digital assets rallied sharply on Friday as investors reacted to Federal Reserve Chair Jerome Powell’s indication that the central bank could begin cutting interest rates as soon as September. The comments marked a pivot in tone after weeks of uncertainty, with crypto-linked equities among the day’s strongest performers. Circle, eToro, and Marathon Digital all surged, with gains of up to 7% and 6%, while Coinbase and MicroStrategy also posted notable gains. The move highlighted the continued sensitivity of crypto markets to expectations around U.S. monetary policy [1].

Bitcoin and ether both rose following Powell’s remarks, as did broader equity indices like the S&P 500 and Nasdaq. The crypto sector’s performance reflected broader market optimism over the possibility of an easing of financial conditions, which typically supports higher-risk and speculative assets. Circle’s stock climbed 7%, eToro and Marathon Digital each gained 6%, and Coinbase added 5%. MicroStrategy, which holds a large bitcoin reserve, rose 4%, while Robinhood gained 3% [1].

The Fed’s potential policy shift comes amid growing political pressure from U.S. President Donald Trump, who has repeatedly urged the central bank to lower borrowing costs. Powell, however, emphasized that inflation risks remain and the labor market continues to show signs of strain. Despite this, he noted that the balance of risks appears to be shifting, suggesting the Fed is re-evaluating its approach. “It is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers,” Powell said, offering a cautious but notable reassurance to markets [1].

Investor sentiment had turned more skeptical in recent weeks after a series of stronger-than-expected economic readings cast doubt on the likelihood of a September rate cut. Powell’s comments on Friday helped rekindle hopes for a policy shift, putting the possibility back in play and sparking renewed optimism across risk assets. The response from crypto-related stocks and digital assets underscored how deeply tied these markets are to expectations around U.S. monetary policy [1].

Source: [1] [Circle, Coinbase, Strategy Surge as Crypto Stocks Rally on Possible Rate Cut Hopes Circle, eToro and Marathon led sharp gains on Friday after Federal Reserve Chair Jerome Powell hinted that a policy shift could come next month](https://www.coindesk.com/markets/2025/08/22/circle-coinbase-strategy-among-crypto-stock-rally-as-powell-signals-september-rate-cuts-may-be-on-the-table)