Buzz around the U.S. Federal Reserve’s potential September interest rate decision is heating up across social media — and some analysts believe it could spell trouble for crypto. Data from sentiment tracker Santiment highlights that discussions on platforms like X and Reddit mentioning the Fed and rate cuts have surged to their highest point in nearly a year.
The spike in attention comes after Friday’s rally in digital assets, fueled by Fed Chair Jerome Powell’s comments at the Jackson Hole symposium, where he suggested that the first interest rate cut of 2025 might arrive as soon as September.
According to Santiment, such extreme levels of hype often align with “overheated” market conditions and may precede a local top. The firm cautioned investors not to overlook the risk of excessive euphoria in the short term.
Analysts Split on What Comes Next
Market sentiment is currently leaning bullish, with the CME FedWatch Tool showing nearly three-quarters of traders pricing in a September cut. Still, Santiment warns that optimism could be masking deeper risks.
Powell noted that progress on inflation and labor market trends “may warrant an adjustment” in monetary policy, reinforcing investor expectations. Yet analysts remain divided.
Some traders, like Ash Crypto, interpret the Fed’s stance as the beginning of a liquidity wave. He predicted that “money printers will turn back on in Q4” and that such conditions could drive an altcoin rally with explosive 10x to 50x gains.
Others urge more patience. Markus Thielen, head of research at 10x Research, argued in April that it’s “too early to expect a sustainable bullish move,” warning that recession fears could pressure Bitcoin in the short run, even if long-term prospects look positive.
What If the Fed Holds Back?
Not everyone is convinced a cut is coming. Some analysts have raised the possibility that the Fed may opt to stay on hold this year, which could pose headwinds for risk assets like crypto. Timothy Peterson, a network economist, previously warned that a delay in easing monetary policy could set off a broader downturn across digital assets.
In short, while Powell’s comments have reignited bullish hopes, the surge in social chatter may be flashing a warning sign: the market could be getting ahead of itself.
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