Fed Sparks Crypto Rally: Following Fed Chair Jerome Powell’s dovish tone and hints at a September rate cut, major digital assets like Bitcoin and Ethereum surged—Bitcoin jumped ~2%, while Ethereum leapt ~8% .

Strong Crypto Equity Correlation: Crypto-linked equities including Coinbase and MicroStrategy gained markedly (~5–7%), signaling enhanced investor appetite for digital-asset exposure .

Block’s Crypto Exposure: As a platform deeply integrated with Coinbase and the broader crypto ecosystem, Square’s stock often moves in tandem with crypto trends—meaning crypto strength can buoy Block’s stock price.

Strategic Timing for Reversal: If crypto’s bullish surge proves short-lived or overextended, a well-timed short could capitalize on a reversal in both digital asset flows and correlated equities like Block.