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Crypto markets could also be peaking as social media chatter round potential Federal Reserve fee cuts hits an 11-month excessive, Santiment mentioned.
Key phrases like “Fed,” “fee,” and “lower” have dominated discussions, reflecting unusually excessive investor optimism, mentioned Santiment, which tracks crypto market sentiment.
“Traditionally, a large spike in dialogue round a single bullish narrative can point out that euphoria is simply too excessive and will sign a market high,” it mentioned in its “This Week in Crypto” report. “ETH is simply inches away from its historic peak, however on-chain information reveals its valuation is coming into a “hazard zone,” signaling potential for a pullback. Regardless of value stability, the quantity of Bitcoin held on exchanges is rising, a pattern that has traditionally preceded promoting stress.”
Powell Hints At Doable Fee Cuts
Santiment’s report comes after Fed Chair Jerome Powell mentioned throughout a speech at Jackson Gap on Friday that the “shifting steadiness of dangers could warrant coverage changes,” boosting optimism over a fee lower subsequent month.
Conventional and crypto markets surged after Powell’s feedback.
Ethereum reached an all-time excessive (ATH) on crypto change Coinbase, whereas Bitcoin managed to recuperate again above the $115k mark once more.
Glad ETH all time excessive to all people who have a good time!
— Brian Armstrong (@brian_armstrong) August 22, 2025
The rally, in accordance with Santiment, was the markets pricing within the potential stimulus in a transparent “purchase the rumor” state of affairs.
The crypto market has since undergone a slight pullback, with the sector’s market capitalization dropping a fraction of a p.c within the final 24 hours to again beneath $4 trillion as of 1:38 a.m. EST.
Crypto market overview (Supply: CoinMarketCap)
Throughout that interval, Bitcoin slid beneath $115K to commerce at $114,908, whereas Ethereum trades at $4,782.61 after a minor improve.
Bitcoin And Ethereum Exhibiting Weak On-Chain Metrics, Says Santiment
Regardless of the market optimism, Santiment says Ethereum and Bitcoin are exhibiting pretty weak on-chain metrics.
Bitcoin is exhibiting ”worrying on-chain indicators,” it mentioned, with day by day lively addresses and transaction volumes having ”cooled off,”
The long-term MVRV ratio, which measures holder profitability, sits at +18.5%, indicating a “barely dangerous zone for brand new long-term investments,” Santiment mentioned.
An uptick within the quantity of BTC on exchanges has surged by practically 70,000 since June, it mentioned, a shift that “can point out that extra holders are positioning themselves to promote.”
Ethereum’s MVRV additionally “indicators a necessity for warning” even amid ETH’s thrilling current value leap, it mentioned.
Ethereum’s short-term (30-day) MVRV is approaching +15%, a stage recognized as a “hazard zone” that normally results in pullbacks for altcoins.
“Much more placing is the long-term MVRV at a really excessive +58.5%, growing the danger of profit-taking,” Santiment mentioned.
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