Polymarket Shows 87% Chance of December Fed Cut; Crypto Stocks Move Higher
Crypto-related stocks surged Friday as prediction-market odds for a December Federal Reserve rate cut rose to 87% on Polymarket, the highest this month. Leading the rally were US-listed Bitcoin miners Cleanspark, Riot Platforms, and Cipher Mining, all showing double-digit gains over the past five days. Circle, issuer of USDC, also jumped nearly 10%, with Coinbase and MicroStrategy seeing modest increases. Bitcoin climbed about 7% on the week after recent volatility tied to Federal Reserve comments. Earlier, hawkish signals from Fed Chair Jerome Powell sent December rate cut odds plummeting, but more dovish remarks from Fed Governor Christopher Waller revived optimism. Prediction markets like Kalshi and Polymarket have grown significantly, forming new partnerships and raising large funding rounds—Kalshi’s latest valuation reaching $11 billion after a $1 billion raise led by Sequoia and CapitalG. Rumors surfaced of Coinbase planning its own prediction platform, apparently in partnership with Kalshi. Meanwhile, Robinhood reported prediction markets as a major new revenue stream, with over a million users trading nine billion contracts since March.
