Crypto traders grew more hopeful of a market rally after the U.S. Federal Reserve left interest rates unchanged on Wednesday, according to sentiment tracker Santiment, though analysts remain divided on whether any upside will last.
Santiment said bullish sentiment on social media jumped sharply after the Fed’s expected decision to keep rates at 3.5–3.75%. Its social discussion score rose from roughly 9 to about 71 in the hours after the announcement, reflecting an increase in posts linking the rate pause to a potential crypto rally. Santiment also noted that much of the bearish reaction to the absence of rate cuts had already been priced in the previous day.
Fed policy has long been a key catalyst for crypto markets. Traders are watching whether the central bank’s pause will make rate cuts more likely in 2025 — a development many view as supportive for a sustained bull market in Bitcoin and other digital assets. But there is no consensus on timing or durability: some analysts predict a quick relief bounce while others warn the move could be short-lived.
Onchain analyst Willy Woo cautioned that conditions may be forming for a “bull trap,” where apparent upside proves temporary before a renewed decline. At the time of reporting, Bitcoin had fallen about 4.35% over the prior 24 hours and was trading near $70,790, though it has gained roughly 3.56% over the past 30 days.
Other commentators are more optimistic. Analyst Matthew Hyland suggested that crypto could “see a significant rally” once the U.S. stock market finds a bottom and rebounds; the S&P 500 has slid around 3.73% over the past month. Trader Moustache also projected a sizable rally in the coming months.
Still, broader sentiment indicators remain cautious. The Crypto Fear & Greed Index moved back into “Extreme Fear” on Wednesday after briefly improving to “Fear” the previous day, signaling that many investors are not yet convinced a sustained uptrend has begun.
In short: the Fed’s rate hold sparked a surge in bullish social chatter and renewed hopes of a relief rally, but market participants are split between expecting a durable recovery and warning that gains could be a temporary trap. Readers are encouraged to verify developments independently and consider multiple indicators before trading.