Climbing a social media chatter around the highly expected US Federal Reserve September interest rate can be a warning sign for crypto, the sentiment platform Santiment said.
It came after the Crypto market rally on Friday and The sentiment on the market is back in greed Following Fed Chair Jerome Powell’s Dovish remarks at the annual Jackson Hole Economic Symposium. He announced that was the first Cutting rate of 2025 may arrive in September.
“History, as a massive spike in discussion around a single bullish narrative may indicate that euphoria is getting very high and can signal a local top,” Santiment Says In a report last Saturday. The firm said social media mentions keywords tied to Fed and Interest rates leaps to their highest levels at 11 months.
Santiment urges to be careful while analysts are divided
“While optimization about a cutting rate is fuel in the market, social data suggests caution is warranted,” Santiment said.
Powell said during his speech on Friday that current inflation conditions and the labor market “may be able to repair” Fed’s financial policy stance. According to In the CME Fedwatch tool, 75% of market participants expect a cutting rate at the September meeting.
Many crypto analysts are based on their assessments in the crypto market with Fed decisions throughout this year. While some see a rate cut as a potential bullish catalyst, others are divided into outcomes.
After Powell’s speech, Crypto businessman Ash Crypto Says“Fed will start money printers in this year’s Q4,” along with two rates, which means “trillion is flowing into the crypto market.”
“We are about to enter a parabolic phase where the altcoins will explode 10x -50X,” Ash Crypto said.
Warning the crypto analyst may face short -term pressure
Others suggest that the crypto market may not immediately see the impact of a cut fed rate.
On April 11, 10x head of research of the Markus Thielen said“The hope of a bullish impulse is too early.” He said that while a longer price chance for Bitcoin (Btc) It may appear, it may face the short-term pressure driven by the fears of shrinkage.
Related: BTC went up to 1.7% of global currency before the Fed Chair Sign Rate Cut
Meanwhile, some say that if the Fed had no action this year, it could lead to headwinds for the crypto market.
On March 9, the network economist Timothy Peterson warned that if the fed Inhibit rate cuts by 2025, this may cause a greater collapse of the crypto market.
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