Ethereum News Today: Crypto Stocks and Digital Assets Surge on Fed's Rate-Cut Signals

Investor sentiment turned bullish as major crypto-related stocks and digital assets surged following remarks from Federal Reserve Chair Jerome Powell, who hinted at the possibility of rate cuts later in the year. The market reaction was swift and broad, with both traditional equities and crypto-linked shares experiencing notable gains. The dovish tone from Powell, particularly during his Jackson Hole speech, eased concerns over prolonged high interest rates, spurring a wave of optimism across risk-on assets [1].

On August 23, the U.S. stock market experienced notable gains in cryptocurrency-linked stocks, with BNB Network rising 18.73% and ALT5 Sigma jumping 19.13%. Cryptocurrency stocks like Coinbase surged by 6.52%, while MicroStrategy and Bitmine saw increases of 6.09% and 12.07%, respectively. This reflects a parallel increase in cryptocurrency prices, notably Ethereum's new highs, contributing to sector optimism. On-chain data supported speculative activities and real-time market adjustments [2].

Ethereum’s price surged to $4,887 as of August 23, 2025. With a market cap of approximately $565.84 billion and a 24-hour trading volume change of over 137%, ETH illustrated significant bullish behavior. Recent metrics show a 9.05% increase in 24 hours and over 86% over 90 days, consistent with rising market interest [3].

Circle (CRCL), one of the most prominent names in the crypto space, saw a 2.46% gain on August 22, 2025, with its stock trading at a volume of $1.85 billion. The surge was attributed to the Federal Reserve’s signal that monetary policy could soon shift toward easing. This development was viewed as a boon for sectors like crypto infrastructure, where lower interest rates typically encourage capital inflows [4].

Bitcoin (BTC) rose approximately 2% to $114,200, while Ethereum (ETH) saw a sharper rebound of over 11.93%. Other digital assets and crypto stocks also experienced gains, with Chainlink’s LINK token surging 12% to a new 2025 high. Coinbase (COIN), despite a temporary dip of 0.79%, and Marathon Digital (MSTR), remained in focus as part of the broader rally [5].

The optimism was not limited to digital assets alone. Traditional equity markets also responded positively, with stocks in general experiencing a strong upward trend. This was especially true for high-beta names that benefited from the shift in expectations around interest rate policy. The overall rally was seen as a sign of renewed risk appetite among investors, who appeared to be repositioning portfolios in anticipation of a more accommodative monetary environment [6].

However, market participants remained cautious, noting that while the Fed’s signals were encouraging, the path forward still involved navigating inflationary pressures and labor market dynamics. Analysts pointed out that while the rally was significant, it did not necessarily indicate a long-term reversal in interest rate expectations. Instead, it reflected a near-term reassessment based on Powell’s remarks [7].

High-volume trading strategies have historically shown a compound annual growth rate of 6.98% from 2022 to 2025, but they also came with notable volatility, including a maximum drawdown of 15.59%. This highlights the risks involved in crypto-driven markets, where sentiment can shift rapidly in response to macroeconomic signals [8].

The move toward a potential rate-cutting cycle was seen as a key catalyst for crypto stocks, with companies like Coinbase, Marathon, and Circle leading the way. Investors who had been sidelined due to high borrowing costs and uncertainty around regulatory frameworks were now showing renewed interest, particularly as the Fed’s pivot seemed to align with broader market expectations [9].

According to Caroline D. Pham, Acting Chair of the CFTC, "Advancing real-time digital asset trading at the federal level is a top government priority. The CFTC’s spot crypto trading listing plan aligns with the SEC’s Project Crypto, responding to U.S. President Donald Trump’s call for action. Public feedback will aid the CFTC in formulating policies related to leverage, margin, and retail trading." Comments from Trump about economic policy might have indirectly influenced market sentiments. However, direct public reactions or statements from company leaders remain absent concerning these specific movements [10].

Overall, the market's reaction to Powell’s comments underscored the interconnectedness of traditional and crypto markets. As investors began to adjust their expectations, the stage was set for further movement in both asset classes, with the potential for more volatility ahead [11].

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Source:

[1] title1: Markets News, Aug. 22, 2025: Stocks Surge After Powell ... (https://www.investopedia.com/dow-jones-today-08222025-11795758)

[2] title2: Crypto Stocks Surge Amid U.S. Market Rally (https://coinmarketcap.com/community/articles/68a929f0ec2cf2319dcf8f9e/)

[4] title4: Circle Surges to 38th in Trading Volume Amid Fed-Driven ... (https://www.ainvest.com/news/circle-surges-38th-trading-volume-fed-driven-crypto-rally-2508/)

[5] title5: Chainlink's LINK Rallies 12% to New 2025 High Amid Token ... (https://finance.yahoo.com/news/chainlinks-rallies-12-2025-high-165728931.html)

[6] title6: 10 Stocks With Eye-Popping Gains Amid Wall Street Cheer (https://www.insidermonkey.com/blog/10-stocks-with-eye-popping-gains-amid-wall-street-cheer-1595731/)

[7] title7: Crypto Stocks Surge on Powell's Rate Cut Signal as Fed ... (https://www.ainvest.com/news/crypto-stocks-surge-powell-rate-cut-signal-fed-policy-shift-fuels-optimism-2508/)

[8] title8: CRCL, COIN, MSTR Among Crypto Stock Rally as Powell ... (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)