Negative sentiment in the cryptocurrency market has reached a new level according to data from Santiment. However, analysts predict that this phenomenon is temporary.
Current Sentiment in the Cryptocurrency Market
According to Santiment, with the price of Bitcoin (BTC) and other altcoins falling, traders have increasingly been discussing the possibility of selling and expectations of a bear market. The platform noted that such sentiments often precede market rebounds.
Factors for a Positive Market Recovery
Some financial institutions forecast that the Federal Reserve will cut interest rates in the coming years. Analyst Pav Hundal emphasizes that the upcoming Fed meeting could be a key turning point for positive sentiment in the market.
Warnings About September Trends
CK Zheng, co-founder of ZX Squared Capital, notes that September is historically considered an unfavorable month for markets, leading traders to be more cautious. Changes in economic indicators may also impact the market.
Thus, the negative sentiment in the cryptocurrency market may prove to be temporary. Analysts assert that potential changes in Federal Reserve policy and other economic factors may contribute to a return of positivity in the market.
