In a significant market development, crypto-linked stocks and digital assets experienced a notable surge on August 22, 2025, following remarks from Federal Reserve Chair Jerome Powell. Powell indicated that the central bank might begin cutting interest rates as early as September, a statement that has reignited investor optimism after weeks of uncertainty regarding the Fed’s monetary policy actions.
The announcement catalyzed a rally not only in cryptocurrencies but also in equity markets, with both Bitcoin (BTC) and Ethereum (ETH) witnessing substantial gains. At the time of reporting, Bitcoin was valued at $115,244.11, while Ethereum also saw an upward trend. The S&P 500 and Nasdaq indexes mirrored this sentiment, rising in tandem with the crypto assets.
Stocks directly associated with the cryptocurrency sector experienced some of the most pronounced moves of the trading day. Circle (CRCL) led the charge with a remarkable 7% increase, followed closely by eToro (ETOR) and Marathon Digital (MARA), each of which climbed 6%. Coinbase (COIN) saw a 5% rise, while MicroStrategy (MSTR), which has substantial holdings in Bitcoin, gained 4%. Meanwhile, Robinhood (HOOD) advanced by 3%. These movements underscore the intricate relationship between crypto assets and equities, particularly in response to expectations regarding U.S. monetary policy.
Lowering interest rates typically eases financial conditions, fostering a climate conducive to risk-taking and enhancing the allure of speculative assets. This sentiment is reflected in the broader market’s response to Powell’s comments. While President Donald Trump has consistently urged the Fed to lower borrowing costs, Powell cautioned that inflation risks persist and that signs of strain remain evident in the labor market.
“The balance of risks appears to be shifting,” Powell stated, noting that although the jobs picture seems stable, “it is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers.”
This careful framing provided reassurance to investors, suggesting that while the Fed is contemplating a rate cut, there is no immediate rush to implement such changes. Powell’s comments revived hopes for a September rate cut, which had dwindled in the wake of a series of stronger-than-expected economic indicators.
As we move further into 2025, the interconnectedness between cryptocurrency markets and traditional equities will likely continue to be influenced by the Federal Reserve’s decisions. Investors will be closely monitoring upcoming economic reports and Fed communications for further guidance on interest rates and monetary policy, as these factors remain critical in shaping market dynamics.
For additional insights on these developments, refer to the full article on CoinDesk.
Helene, a New York-based markets reporter at CoinDesk, specializes in covering the latest trends from Wall Street, the emergence of spot Bitcoin exchange-traded funds, and the evolving landscape of crypto markets. With a background in business and economic reporting from New York University, she has contributed her insights to platforms like CBS News, Yahoo Finance, and Nasdaq TradeTalks. Helene actively holds both Bitcoin and Ethereum.
