According to the sentiment, Santiment, an raise in social media around a very expected decision of the US Federal Reserve, September may be a warning sign for cryptocurrencies.
This appeared after the cryptographic market gathered on Friday, and market moods returned to greed after the pigeon chairman Jerome Powell at the annual economic symposium of Jackson Hole. He suggested that the first reduction in the rate in 2025 could take place in September.
“Historically, such a huge increase in discussions about one stubborn narrative may indicate that euphoria becomes too high and can signal a local top,” Santiment he said In the report from Saturday. The company said that memories of social media with key words related to feders and reduction of interest rates increased to the highest level within 11 months.
Santiment calls for caution because the analysts are divided
“While the optimism regarding the reduction of the rate drives the market, social data suggest that caution is justified,” said Santiment.
Powell said during his speech on Friday that the current conditions of inflation and labor market “can justify the adaptation” of the Fed monetary policy attitude. According to For the CME Fedwatch tool, 75% of market participants expect a reduction in the rate at the September meeting.
Many cryptographic analysts have based their market cryptocurrency forecasts on FED decisions this year. While some perceive the reduction of the rate as a potential stubborn catalyst, others are divided into a result.
After Powell’s speech, Trader Trader Ash Crypto he said“Fed will launch cash printers in the third quarter of this year”, along with two stakes, which means that “trillions will affect the cryptographic market.”
“We will enter the parabolic phase in which Altcoins explode 10x -50x,” said Ash Crypto.
The analyst warns that crypto can face miniature -term pressure
Others suggest that the cryptocurrency market may not immediately see the impact of the Fed rate reduction.
On April 11, 10x, the head of research Markun Thielen said: “expecting a stubborn impulse is too early.” He said that although there may be a long -term chance for bitcoins (BTC), it could be in the face of miniature -term pressure driven by recession fears.
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Meanwhile, some say that if the Fed does not take any action this year, this can lead to wind on the cryptographic market.
On March 9, the Timothy Peterson network economist warned that if the Fed maintains the rates of rates in 2025, this could cause wider cryptocurrencies.
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