Bitcoin and Crypto Stocks Surge as Powell's Rate-Cut Hint Revives Risk Appetite

KEY TAKEAWAYS

Crypto market traders were positioned for Jerome Powell to be hawkish in a highly anticipated speech, but they were pleasantly surprised as the Fed chief suggested rate cuts could be coming soon.

Prediction markets bettors now place higher odds of a quarter percentage rate cut in September than they did prior to the speech.

Bitcoin and proxy stocks such as Strategy and Coinbase also surged as the prospect of lower interest rates revived investors' appetite for risk.