The Fed's action in reducing the interest rate of the United States last week gave a boost to the financial market, especially crypto, and many analysts consider the 'sell' action to be very risky.
Nansen blockchain analyst Aurelie Barthere said the Fed's decision to ease current policy has broadly met market expectations.
Crypto investments are well suited to current monetary decisions as they support the surge in the price of tokens even though the asset remains risky in the market.
He also said that Nansen's firm's actions are now more cautious following the significant surge in crypto investments that have revealed higher risks.
However, market sentiment is turning more positive as indicated by ie index that measures feelings of fear or greed in the crypto market.
On September 25, it rose to a score of 59. This is an increase of 14 points since the Fed announced a 50 basis point interest rate cut on September 18.
This shows that before the reduction in interest rates, investors are more cautious or afraid. After the announcement, market sentiment turned more optimistic and risk-averse.
