Crypto Stocks Rally After Powell’s Dovish Remarks
Crypto stocks surged following Fed Chair Jerome Powell’s dovish tone at Jackson Hole, boosting risk assets across equity and digital-asset markets. Nasdaq-listed Coinbase (COIN) led gains, jumping over 6% intraday, while MicroStrategy (MSTR) climbed toward $354 after a roughly 65% rise. Miners and software firms CleanSpark (CLSK) and Riot Platforms (RIOT) added 5%–9% as Bitcoin (BTC) and Ethereum (ETH) rallied 3% and 12% respectively on renewed hopes for Fed rate cuts. The broad market rally saw the Dow up 2%, the S&P 500 up 1.45% and the Nasdaq up 1.6%, reflecting growing demand for risk assets. Traders should watch Fed commentary and on-chain indicators for the next directional cues. Lower-for-longer rate expectations are likely to remain bullish for crypto stocks, though volatility may persist amid macro updates.
Bullish
Fed Chair Powell’s dovish speech at Jackson Hole lifted risk appetite, triggering a broad rally in crypto assets and equities. Historical easing cycles, including past Fed rate cuts, have favored risk-on sectors like crypto stocks. For example, similar dovish shifts in 2023 led to significant recoveries in Bitcoin and Ethereum, alongside gains in miners and exchanges. In the short term, traders may see heightened momentum as markets price in potential rate cuts. Over the long term, sustained lower rates could support higher valuations for crypto stocks, although volatility will persist as policymakers balance inflation and growth concerns. Monitoring Fed signals and on-chain trends will be key for anticipating future market moves.