Bitcoin Sentiment Shifts to Neutral as Markets Eye Jackson Hole

Bitcoin sentiment shifted from fear to neutral as crypto markets rebounded from a brief correction, while traders prepare for possible volatility around the upcoming Federal Reserve speech at Jackson Hole.

Crypto market sentiment returned to neutral on Thursday after a short-lived dip into the “fear” zone when Bitcoin briefly fell to $112,350 on Wednesday, a roughly 10% correction from its August peak of just over $124,000.

After the low, Bitcoin reclaimed the $114,500 level during early trading on Thursday, contributing to a rebound in the Fear & Greed Index, which moved back to a neutral score of 50 from 44. Short-term sentiment gains were broad-based across leading assets.

What is driving the change in Bitcoin sentiment?

Bitcoin sentiment improved primarily because prices recovered above key intraday support and social interest in major tokens rose, prompting traders to re-enter positions. Market participants cited improved on-chain and social metrics for Bitcoin, Tether, XRP, Cardano, and select memecoins as contributing factors.

How significant was the price move and market-cap impact?

Bitcoin’s drop to $112,350 represented an intraday correction of roughly 10% from the recent high. Total crypto market capitalization recovered to approximately $3.96 trillion after a 2% gain in 24 hours, indicating renewed buying pressure across spot markets.

How could Powell’s Jackson Hole speech affect crypto volatility?

Jerome Powell’s remarks at Jackson Hole are widely expected to influence rate expectations and hence risk assets, including crypto. A dovish tone could accelerate rallies, while a hawkish message may trigger sharp downside moves in both equity and crypto markets.

What are traders watching ahead of Jackson Hole?

Traders track changes in implied probabilities for rate cuts reflected in futures instruments and tools that gauge Fed expectations. At present, futures-based measures showed a high chance of a September rate cut, but that probability has been shifting and may be revised following Powell’s comments.

Market participants and analysts quoted internal research and public commentary noting that Jackson Hole has historically produced outsized moves. Sources referenced by market observers include on‑chain analytics providers and trading desk commentary; these references are retained as plain text for context and not linked.

Frequently Asked Questions

Did Bitcoin’s Fear & Greed Index reach a low point?

The Fear & Greed Index fell to 44 during the correction, the lowest reading in roughly two months, before rebounding to 50 as prices recovered above $114,000 and social interest picked up.

How likely is a rate cut and why does it matter for crypto?

Rate-cut probability estimates from futures-based tools have pointed to a possible cut later this year, though probabilities have recently fluctuated. Lower rates tend to support risk assets and can reduce downward pressure on speculative markets like crypto.

Key Takeaways

• Sentiment shift: Bitcoin moved from fear (44) to neutral (50) after reclaiming $114,500.
• Market cap: Total crypto capitalization recovered to about $3.96 trillion after a 2% gain.
• Event risk: Powell’s Jackson Hole speech is the primary near‑term catalyst; traders should prepare for heightened volatility.

Conclusion

Bitcoin sentiment has normalized following a short correction, but the path forward depends heavily on macro cues and Federal Reserve communication at Jackson Hole. Traders are advised to monitor rate expectations, use risk controls, and size positions with volatility in mind. COINOTAG will update coverage as new data and official statements emerge.