Market Sentiment Flashes Warning as Fed Euphoria Peaks, Santiment Reports
The crypto market’s jubilation following Fed Chair Jerome Powell’s hints at a September 2025 rate cut may be reaching a precarious peak, according to data from sentiment analytics platform Santiment.
The firm reports that social media mentions of Fed-related keywords have surged to their highest level in nearly a year. Santiment cautions that, historically, such a massive concentration of discussion around a single bullish catalyst often signifies that optimism has become overextended.
This pattern frequently precedes a “local top,” where asset prices stall or reverse as the hype dissipates.
While the fundamental narrative of lower future rates remains positive, Santiment’s metrics suggest that the trade has become crowded, warranting investor caution in the short term.
