Bitcoin at a Pivotal Moment: Will Powell’s Speech Give the Market Direction?

Crypto market sentiment has returned to neutral, as markets showed signs of recovery on Thursday after a brief drop into the “fear” zone, where Bitcoin fell to $112,000 a day earlier.

According to CoinTelegraph, Bitcoin’s price reached $112,350 in late Wednesday trading, falling about 10% from its $124,000 record. This event pushed the Bitcoin Fear & Greed Index to 44, its lowest level in two months.

Since then, the index has started to recover, and Bitcoin has reached the $114,500 level, which has led to improved sentiment. The index has now returned to neutral with a rating of 50. However, Santiment analysts warned:

As expected, crypto markets are starting to rebound. Be careful of more FUD, and markets are moving against public expectations.

Santiment also named several digital assets that have captured user attention. These cryptocurrencies were Bitcoin, Tether (USDT), Ripple (XRP), Cardano (ADA), and an obscure meme coin called SNEK.

David Bailey, a Bitcoin entrepreneur and cryptocurrency advisor to U.S. President Donald Trump, said:

One of the funniest aspects of Bitcoin is sentiment. It flickers like a flame. One moment euphoria, the next panic. Many bitcoins have changed hands through such emotions. It is better to stay focused.

Augustin Fan, head of SignalPlus, a crypto trading software service provider, stated:

The price of cryptocurrencies has been on a downward trend over the past week with an increase in macroeconomic factors. U.S. Treasury Secretary Scott Bassant disappointed traders by stating that the government did not intend to buy more Bitcoin for its strategic Bitcoin reserves, although he later backed away from these statements.

The total market cap has reached $3.96 trillion after a 2% increase in the last 24 hours. However, more volatility may be ahead this week.

All Eyes on the Fed Chair’s Speech at Jackson Hole

Investors are eagerly awaiting the speech by Federal Reserve Chairman Jerome Powell at the Jackson Hole conference on Friday, which has consistently moved markets. BitGo, a Bitcoin solutions provider, stated:

Markets are preparing for Jackson Hole, as Powell’s tone can shake stocks and cryptocurrencies.

Jason Williams also emphasized:

Markets have welcomed the possibility of Powell not cutting interest rates in September, but if he enters cautiously and announces the possibility of a rate cut, we will fall apart.

Ran Neuner, a CNBC trader, said: