Santiment Flags “Euphoria” as Fed Talk Threatens Crypto Rally

The recent crypto rally, built on the foundation of anticipated Federal Reserve rate cuts, is showing signs of being on shaky ground. Data from Santiment indicates that social media euphoria surrounding the Fed’s September meeting has exploded to its highest level since last year.

This intense focus, according to the analytics firm, historically acts as a reliable contrarian indicator. It typically signals that a “local top” is forming, meaning the current bullish momentum is unsustainable.

The warning implies that the market may have already priced in the good news, leaving it vulnerable to a sell-off if the narrative shifts or even if the expected cut is merely delayed. Investors are advised to view the current optimism with skepticism.