Key TakeawaysBitcoin sentiment shifted from “fear” to neutral after rebounding from a sharp correction.BTC dropped 10% from its August peak before recovering above $114,000.Santiment warns “FUD may not be over” as markets remain sensitive to crowd psychology.All eyes are on Fed Chair Jerome Powell’s Jackson Hole speech for the next major market move.Bitcoin Sentiment Shifts From Fear to NeutralBitcoin (BTC) recovered Thursday after dipping into the “fear” zone earlier in the week. The leading cryptocurrency fell to $112,350 on Coinbase Wednesday, a 10% correction from its August high above $124,000. The drop pushed the Bitcoin Fear & Greed Index to 44—its lowest in two months.BTC has since rebounded, reclaiming $114,500 in early Thursday trading, according to TradingView. The index has now returned to a neutral 50, signaling improved sentiment.“As anticipated, crypto markets have begun to rebound,” analysts at Santiment said, while cautioning that further fear, uncertainty, and doubt (FUD) could still pressure prices. The firm also highlighted growing social interest around Bitcoin, Tether (USDT), XRP, Cardano (ADA), and the memecoin SNEK.Sentiment Remains FragileBitcoin entrepreneur and U.S. presidential crypto adviser David Bailey noted how quickly market emotions swing. “One moment euphoria, moments later panic,” he said, urging investors to zoom out and stay focused on the long-term trend.Macro headwinds also weighed on sentiment. Augustine Fan, head of insights at SignalPlus, said crypto prices have been “treading water” as uncertainty builds. Treasury Secretary Scott Bessent briefly fueled concern by stating the U.S. government would not expand its Strategic Bitcoin Reserve, though he later appeared to soften his stance in an X post.Total crypto market capitalization has since recovered to $3.96 trillion, up 2% in 24 hours, but analysts caution that volatility is far from over.Powell’s Jackson Hole Speech in FocusThe next major catalyst for crypto markets may come Friday when Federal Reserve Chair Jerome Powell speaks at the Jackson Hole conference, an event historically known for moving both equities and crypto.“Markets brace for Jackson Hole as Powell’s tone could jolt equities and crypto,” said BitGo.Traders remain divided: some expect Powell to maintain a hawkish tone and delay rate cuts, while others see potential for a dovish surprise. “If he comes in soft and leans that rate cuts are likely, we turbo rip,” author Jason Williams said.Ran Neuner of CNBC added: “Jackson Hole will shape crypto’s direction moving forward. Trump is pushing for a rate cut, but will Powell listen?”According to the CME FedWatch tool, markets currently price in an 82% chance of a rate cut on September 17, though expectations have been slipping.OutlookBitcoin’s rebound has stabilized market sentiment, but caution dominates ahead of Powell’s speech. With sentiment fragile and macro uncertainty rising, analysts say crypto markets could face sharp swings in the days ahead, according to Cointelegraph.
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