Bitcoin BTC/USD is hovering around $115,000 one day ahead of the much-anticipated interest rate decision by the Federal Reserve.
What Happened: Santiment data on Tuesday noted that a 25-basis points rate cut is widely expected.
Bitcoin’s social sentiment has turned sharply bullish, with 64% of comments leaning positive, the highest greed levels since July 10.
While this reflects strong optimism, history shows markets often move against retail expectations, suggesting traders should temper hopes of a major post-cut surge.
However, this does not imply that Bitcoin and altcoins are due for a correction.
If the Fed surprises by holding rates steady, a sharp correction could catch bullish investors off guard.
In an X post on Sep. 12, Santiment data also pointed out that in late August 2025, Bitcoin rallied on expectations of rate cuts, but history shows that when optimism peaks, buying power dries up and prices often fall.
This pattern repeats as retail traders, prone to chasing headlines, drive sentiment, while whales usually take the opposite side.
Once the hype fades, markets tend to move against the crowd, rewarding contrarian investors who anticipate these reactions.
Also Read: Bitcoin To Reach $750,000 In The Next 5 Years, Pantera Capital’s Dan Morehead Says
What’s Next: Crypto investor Ted Pillows said Bitcoin is consolidating below $117,200, with a breakout potentially opening the door to new all-time highs. Conversely, a breakdown below $113,500 could set a fresh monthly low.
Trader Degen Hardy offered a more balanced outlook, noting two main scenarios into the FOMC: either Bitcoin holds its range/sideways, providing room for altcoins to run or it risks losing key support.
Hardy added that he is not adding to his BTC stack, preferring to focus on altcoin trades into year-end with plans to scale out profits in the next 2-3 months.
Read Next:
Bitcoin, Ethereum, Dogecoin Consolidate As XRP Tries To Push Higher
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