The crypto market surged following the Federal Reserve’s interest rate cut, with major cryptocurrencies experiencing rallies. However, the long-term outlook remains uncertain.
The much-anticipated Federal Reserve interest rate cut news was announced yesterday. The Fed implemented its first interest rate cut since 2020 on Wednesday, reducing the interest rate by 50 basis points. The crypto market reacted positively to the news as many cryptocurrencies became bullish. Many altcoins, including Fantom [NC], SUI SUI $3.34 24h volatility: 4.9% Market cap: $11.73 B Vol. 24h: $1.07 B , and Near Protocol NEAR $2.42 24h volatility: 4.4% Market cap: $3.03 B Vol. 24h: $175.64 M , are seeing mini surges.
SUI has gained over 13% in the past 24 hours. Similarly, FTM has gone up more than 14% in the last day following the news, continuing its strong rise from the past four days.
More so, the NEAR Protocol has followed the footsteps of others. NEAR is not missing out on the bullish party, as the token has continued its uptrend movement over the past three days. Reacting to the interest rate cut, NEAR has amassed over 10% gain in the last 24 hours.
The surge in altcoins following the Fed rate cut could signal the start of the much-talked-about altcoin season, allowing many investors to gain big. The announcement also affected Bitcoin, which has increased by more than 2% in the last 24 hours.
Crowd Sentiment to Determine BTC’s Next Price Direction
Onchain analytic firm Santiment released a report on how the crowd’s reaction could determine Bitcoin’s (BTC) market direction following the news.
They opined that increased mentions between $50,000 and $59,000 suggest fear and a potential price bottom, while mentions around $60,000 and $69,000 mean the crowd is neutral and there is unpredictability. On the other hand, mentions between $70,000 and $79,000 indicate greed and hitting a possible market top.
📈 Cryptocurrencies are on an impressive upswing following a groundbreaking US Fed decision to cut interest rates for the first time since March 15th, 2020.
The social expectations from the crowd will have a dramatic impact on where we go from here. With Bitcoin reaching as high… pic.twitter.com/AQbQpXqIYI
— Santiment (@santimentfeed) September 19, 2024
Santiment further noted that while there may be excitement over BTC rising above $60,000, the crowd will determine the future price movement, especially if the prices go flat.
Therefore, the crypto analytics firm encourages crypto users to watch for dominant mentions on various social media channels, which could determine the next price direction.
Potential Impact on the Crypto Market’s Future
The crypto market going bullish following the Federal Reserve’s cut in interest rate could have a much larger impact on the market. This might encourage more investors to accumulate more cryptos, especially altcoins, and, consequently, could continue to drive the price up. The fear of not missing out (FOMO) could result in a buying frenzy, which could maintain the positive sentiment in the market.
However, with the upcoming US election in November poised to affect the crypto market, the long-term implication remains bleak. Many in the crypto industry believe that the coming US election could determine a lot for crypto, either positively or negatively, depending on which candidate emerges into key positions.
As Santiment suggested, the crowd’s sentiment could determine the crypto market outlook by then. Maintaining a positive sentiment is key to continued growth.
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