Crypto Stocks Rally as December Rate Cut Odds Hit 87%

The cryptocurrency market experienced a significant boost as prediction-market platform Polymarket showed 87% odds of a December Federal Reserve rate cut, marking the highest probability level recorded this month. This surge in monetary policy optimism created a ripple effect across crypto-linked equities, with several prominent companies posting substantial gains during Friday’s trading session. The strong performance demonstrates how traditional financial policy expectations continue to drive sentiment in the digital asset space, with investors positioning for potential monetary easing that typically benefits risk assets like cryptocurrencies and related stocks.

According to Yahoo Finance data tracking the market movement, the increased probability of rate cuts reflects growing confidence among traders that the Federal Reserve will shift toward a more accommodative monetary stance. This development comes amid ongoing economic data analysis and represents a significant shift in market expectations compared to earlier in the month. The 87% probability reading on Polymarket provides a clear quantitative measure of market sentiment, offering insight into how traders are positioning for potential policy changes that could impact liquidity conditions and risk appetite across financial markets.

Three major US-listed Bitcoin mining companies emerged as the standout performers in the rally, with Cleanspark, Riot Platforms, and Cipher Mining all posting significant gains during the session. These companies demonstrated particularly strong momentum, showing double-digit percentage increases over the past five trading days as investors anticipated potential improvements in mining profitability under lower interest rate conditions. The mining sector’s outperformance highlights how companies directly tied to Bitcoin production stand to benefit from improved market sentiment and potentially lower operational costs.

The strong showing from Bitcoin mining stocks reflects broader optimism about the cryptocurrency ecosystem’s prospects in a lower-rate environment. Mining operations, which require substantial capital investment and ongoing operational expenses, typically benefit from improved financing conditions and enhanced Bitcoin price prospects when monetary policy becomes more accommodative. The simultaneous strength across multiple mining companies suggests a sector-wide reassessment of valuation prospects rather than company-specific developments driving the price action.

Beyond the mining sector, other cryptocurrency-related companies participated in the Friday rally, with Circle—the issuer of the USDC stablecoin—jumping nearly 10% in early trading. This significant move demonstrates how expectations of monetary policy changes can impact various segments of the crypto ecosystem, including stablecoin providers whose products are closely tied to traditional financial systems and interest rate environments. The strong performance suggests investors see potential benefits for Circle’s business model in a shifting rate landscape.

Michael Saylor’s MicroStrategy and major cryptocurrency exchange Coinbase also posted gains, though these increases were described as more modest compared to the mining sector’s explosive moves. The participation of these established players in the crypto ecosystem indicates broad-based optimism about the sector’s prospects amid changing monetary policy expectations. The varied performance across different types of crypto companies—from miners to exchanges to financial service providers—illustrates how rate cut expectations can create tailwinds across multiple segments of the digital asset industry while affecting each business model differently.