Crypto Stocks Jump as Powell Signals Possible September Rate Cut

Crypto-related equities surged Friday after Federal Reserve Chair Jerome Powell opened the door to a potential policy shift as early as next month.

In a highly anticipated speech at Jackson Hole, Powell indicated that the central bank could begin easing interest rates in September, marking a notable shift from recent hawkish sentiment. His comments reignited investor optimism following weeks of skepticism that the Fed would act before year-end.

Bitcoin (BTC) and ether (ETH) rallied in response, alongside broader equity indices such as the S&P 500 and Nasdaq. However, it was crypto-exposed stocks that posted some of the strongest gains of the session.

Circle (CRCL) led the rally with a 7% increase, followed closely by eToro (ETOR) and Marathon Digital (MARA), each up 6%. Coinbase (COIN) added 5%, while MicroStrategy (MSTR), with its significant bitcoin holdings, rose 4%. Robinhood (HOOD) advanced 3%.

The surge underscored how sensitive crypto markets and related equities remain to U.S. monetary policy expectations. Lower rates typically improve liquidity and risk appetite, fueling interest in speculative assets like digital currencies.

While Powell noted that inflation risks have not fully abated and the labor market continues to show signs of weakness, he hinted that the Fed’s stance is becoming more balanced.

“The balance of risks appears to be shifting,” Powell said, cautioning that while employment data appears steady, the underlying labor dynamics reflect a slowdown in both labor supply and demand.

The remarks offered reassurance to investors hoping for a more accommodative policy stance without signaling immediate action. Market expectations for a September rate cut had dipped in recent weeks amid strong economic data, but Powell’s comments put that possibility back on the table.