This study explores the reactions of the cryptocurrency market to the U.S. announcements of macroeconomic indicators by considering the impacts of investor sentiment. Using the large intraday dataset on the top 100 crypto assets from 2014 to 2021, we confirm that the cryptocurrency market exhibits substantial reactions, regarding returns and trading volume, to the announcements of macroeconomic news. Investor sentiment exerts an important role in modifying the reactions of crypto investors. During periods of bullish sentiment, the market's responses are notably dampened, exhibiting a 40 to 50 percent reduction compared to bearish sentiment periods. These effects persist when we examine individual announcements, both good and bad news. Importantly, our results maintain their robustness across a range of sub-sample analyses, alternative sentiment measures, estimation techniques, additional controls, and news from other major economies. This research adds valuable insights into how investor sentiment interacts with fundamental factors to shape the dynamics of the cryptocurrency market.