Expectation of a relief rally came despite a widely used crypto sentiment indicator falling back into “Extreme Fear” on Wednesday.
Crypto traders have become hopeful for a market rally after the US Federal Reserve held interest rates steady on Wednesday, according to crypto sentiment platform Santiment.
However, analysts are split on whether a near-term market surge is a reliable signal for traders.
“For now, traders are expecting a bullish relief rally in spite of no changes being made,” Santiment said in an X post on Wednesday, pointing to an increase in bullish sentiment among crypto market participants on social media who are linking the Fed’s steady rates to a potential crypto rally.
