Crypto markets are riding a wave of optimism fueled by recent comments from Federal Reserve Chair Jerome Powell. As the possibility of a rate cut in September gains traction, Santiment alerts investors to potential dangers lurking beneath the surface. The platform noticed a surge in social media mentions related to ‘Fed’, ‘rates’, and ‘cut’ – reaching its highest level in over a year. This frenzy coincides with surging Bitcoin prices and a high 75% expectation of a rate cut amongst market participants, according to CME’s FedWatch tool. However, Santiment cautions that the current euphoria might signal an unsustainable peak. It cites historical data, suggesting such rapid surges often precede market downturns. While experts are divided on the true impact of a rate cut, Bitcoin’s recent surge above $116,000 and the Fear & Greed index’s jump to 60 from 50 indicate a positive sentiment within crypto markets.