The increase in chatting on social networks around the long-awaited decision of the interest rates of the United States Federal Reserve could be a warning panel for the crypto, said the Santiment feeling platform.
It occurs after the cryptographic market has rallied on Friday and the feeling of the market returned to greed after the dovanity remarks of the Fed Jerome Powell pulpit at the annual economic symposium of Jackson Hole. He suggested that the first rate drop in 2025 could arrive in September.
“Historically, such an increase in the discussion on a single bullish account may indicate that euphoria becomes too high and can report a local high,” said Santly in a report on Saturday. The company said that keyword mentions of social media linked to the Fed and that interest rate reductions had jumped at their highest level in 11 months.
Santiment urges caution as analysts are divided
“Although optimism concerning a drop in rate fuels the market, social data suggests that caution is justified,” said Santiment.
Powell said during his speech on Friday that the current inflation and labor market conditions “could justify the adaptation” of the position of the Fed monetary policy. According to the CME Fedwatch tool, 75% of market players expect a drop in rates at the September meeting.
Many cryptographic analysts have based their Cryptography Market Forecast on Fed decisions throughout this year. While some see a drop in rate as a potential optimistic catalyst, others are divided on the result.
After Powell’s speech, Crypto ash crypto trader said: “The Fed will launch silver printers in the fourth quarter of this year”, as well as two rate reductions, which means that “billions of billions will flow on the cryptography market”.
“We are about to enter the parabolic phase where altcoins will explode 10x -50x,” said Ash Crypto.
The analyst warns that crypto can face short -term pressure
Others suggest that the cryptography market may not immediately see the impact of a drop in the Fed rate.
On April 11, the 10x research manager Markus Thielen said: “Expect a bullish impulse is too early.” He said that if a longer -term price opportunity for Bitcoin (BTC) could emerge, he can face short -term pressure led by recession fears.
In relation: BTC climbed 1.7% of world money before the drop in the Fed Chair Signal
Meanwhile, some say that if the Fed does not take any measure this year, it could lead to winds -contrary to the cryptography market.
On March 9, the network economist, Timothy Peterson, warned that if the Fed is held on the rate reductions in 2025, this could lead to a wider slowdown in the cryptography market.
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