Santiment: Clarity Act Failure and Fed Rate Hike Cool Market Sentiment to Neutral

Santiment, an on-chain analytics platform, has analyzed that cryptocurrency market sentiment has cooled to a near-neutral level following the rejection of the Clarity Act closure vote and the Federal Reserve's interest rate increase. Santiment explained that extreme FOMO (fear of missing out) spread across the crypto market on September 14 (local time), as traders increased positions based on expectations that the Clarity Act would pass favorably, causing a rapid surge in bullish sentiment. The platform noted that regardless of actual outcomes, an overly optimistic and overheated atmosphere dominated the market—a warning sign in itself.

Following the Clarity Act's procedural failure on September 15 in the Senate, investors who had bought into FOMO faced declines, and the Federal Reserve's rate hike on September 16 introduced another risk-off factor. As a result, current market sentiment has moved closer to neutral. Compared to early this week, the market now appears to have created a more sound psychological environment for taking additional risks. Excessive optimism and heat have largely dissipated, with fear psychology beginning to form again. Market movements should be closely monitored.