Crypto: Santiment cautions against risky excitement following Powell's address

Market Reaction to Federal Reserve: Following Jerome Powell's mention of a potential rate cut in September, there has been a significant increase in social media discussions about the Fed and rates, with 75% of market participants expecting a cut.

Caution from Analysts: Santiment warns that the current euphoria in crypto markets may indicate a local peak, as historical trends suggest that excessive optimism can lead to abrupt market corrections.

Divergent Analyst Opinions: While some analysts believe a rate cut could significantly boost the crypto sector, others caution against premature optimism, highlighting potential short-term pressures due to recession fears.

Impact of Monetary Policy on Cryptos: The frenzy surrounding Powell's announcements underscores the influence of monetary policy on cryptocurrencies, suggesting that while a rate cut could spark a bullish phase, investors should remain vigilant to avoid being caught off guard by market reversals.