TL;DR
- Bitcoin Sentiment Recovery: BTC rebounds from $112,350 to neutral sentiment at 50 on the Fear & Greed Index, but analysts warn that sudden crowd shifts and past volatility patterns suggest renewed turbulence could still emerge.
- Macro and Policy Signals: Comments from Treasury Secretary Bessent on Bitcoin reserves, later softened, combined with existing economic pressures, are viewed by experts as potential triggers.
- Jackson Hole Anticipation: Powell’s upcoming speech has a history of moving markets, and current rate cut odds at 82% leave traders split on direction; a dovish tone could boost crypto sharply, while a cautious stance might stall the recovery.
Bitcoin sentiment has shifted from “fear” to neutral after its steepest drop in two months, yet market experts warn that volatility could return quickly. The move follows a rebound from last week’s sharp sell-off, which briefly dented investor confidence before prices and sentiment steadied.
📈 As anticipated, crypto markets have began to rebound. Watch for more FUD, like the signal we revealed yesterday, as optimal buy signals. Markets move opposite to crowd's expectations:
🔗 Link to monitor crowd FOMO & FUD: https://t.co/4h3mmr1ENp https://t.co/hEExe7Byr6
— Santiment (@santimentfeed) August 20, 2025
Sentiment Shifts After Price Rebound
The Bitcoin Fear & Greed Index climbed from 44 to 50 after BTC recovered from a 10% slide from August highs near $124,000. On Coinbase, Bitcoin fell to $112,350 before regaining momentum. Santiment noted that social discussion had surged for Bitcoin, Tether, XRP, Cardano, and meme token SNEK, but cautioned that crowd expectations often flip the market’s direction.
Analysts Weigh Macro Pressures
David Bailey, an adviser to U.S. President Donald Trump, described sentiment as “fragile,” stressing that traders should stay long-term focused. Augustine Fan of SignalPlus pointed to U.S. Treasury Secretary Scott Bessent’s early remarks that no additional Bitcoin would be added to the Strategic Bitcoin Reserve; comments later softened on social media. These signals, combined with broader economic uncertainty, could keep traders on edge.
Market Recovery Extends Beyond Bitcoin
The total crypto market capitalization rose to $3.85 trillion, with a daily increase of less than 1%. Top altcoins mirrored Bitcoin’s recovery, though analysts said investor confidence remains uneven. Traders are closely watching how speculative assets will react if macroeconomic indicators shift in the weeks ahead.
Eyes on Powell’s Jackson Hole Speech
All eyes are on U.S. Federal Reserve Chair Jerome Powell, who is scheduled to speak at the Jackson Hole symposium. In previous years, his remarks have influenced both stocks and digital currencies. The CME Fed Watch tool indicates an 82% chance of a rate cut in September, although that number has decreased. Market figures like BitGo and Ran Neuner believe a dovish stance could ignite a stronger crypto rally. In contrast, others warn that the recovery is still vulnerable.
