US-listed cryptocurrency stocks soared on Thursday after a half-percentage point interest rate cut by the Federal Reserve fueled risk-on sentiment among investors. The reduction in rates added momentum to an industry already riding high on significant wins earlier this year.
Bitcoin, the leading cryptocurrency, responded strongly, rising by 4.6% to trade at $62,991, as the Fed’s rate cut signaled a potential end to hawkish monetary policy. This shift revived interest in the crypto market, with investors increasingly favoring riskier assets over traditional safe-haven investments.
Among the biggest beneficiaries was MicroStrategy, a major corporate backer of Bitcoin, which saw its shares surge nearly 10%. Meanwhile, shares of Coinbase Global, the largest crypto exchange in the US, jumped by 6.4%. Digital asset miners also experienced gains, with Riot Platforms rising 1.6%, Marathon Digital up 4%, and CleanSpark climbing 5.3%.
“The cut is aggressive, but more important than its impact is what it signals. This could mean the end of hawkish monetary policy for some time,” said Henry Robinson, co-founder of crypto mining firm Decimal Digital Currency. His comments reflected broader sentiment in the market, where the Fed’s action was seen as a potential catalyst for continued growth in digital assets.
Regulatory Tailwinds and Election Uncertainty
The rate cut follows earlier regulatory wins for the crypto industry, including landmark approvals for exchange-traded funds (ETFs) tracking the price of Bitcoin and its peer Ether. These developments had already bolstered investor confidence in the sector, though recent market sentiment has been more volatile as the US presidential election approaches.
Republican candidate Donald Trump has positioned himself as a pro-Bitcoin candidate, vowing to fire SEC Chair Gary Gensler, who has been criticized for aggressive enforcement in the crypto space. Trump further bolstered his crypto credentials by launching a new venture this week and reportedly using Bitcoin to pay for food at a New York bar during a campaign event.
However, industry leaders remain optimistic about the future of cryptocurrency regulation, regardless of the election outcome. They believe the US will become increasingly favorable toward digital assets, creating a more conducive environment for the sector’s growth.
This confluence of regulatory progress, shifting monetary policy, and political dynamics continues to drive optimism in the US-listed crypto market, with further gains expected as investors seek higher returns in the evolving financial landscape.
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