Surge in Crypto Stocks as Powell Points to Possible Rate Cuts

Crypto-related stocks witnessed a significant rise on Friday following statements from Federal Reserve Chair Jerome Powell, who hinted that the Fed may initiate interest rate cuts as early as September.

What to Know:

• Following Powell’s suggestion, Circle’s stock soared by 7%, while eToro and Marathon Digital each saw a 6% increase.
• Powell is facing increasing political pressure to reduce rates but continues to express concerns about inflation and weaknesses in the labor market.

In this context, Bitcoin and Ether prices also experienced upswings amid rising market optimism, reflecting their close ties to the U.S. monetary policy outlook. Investors are cautiously optimistic about potential rate changes ahead, as the market seeks signs of stabilization in economic conditions.

“The balance of risks appears to be shifting,” Powell noted. He also remarked on the curious stability in job markets against a backdrop of declining demand for labor.

Overall, the developments underscore the high correlation between crypto assets and expectations regarding the Federal Reserve’s monetary policies.