Bitcoin and as Crypto Sentiment Flips Back to Greed After Fed Speech Crypto Sentiment Index Hits “Greed” After Fed Comments

Crypto Sentiment Index Hits “Greed” After Fed Comments

The crypto market saw a sharp recovery over the weekend, with sentiment flipping back into Greed after dovish remarks from U.S. Federal Reserve Chair Jerome Powell.

According to the Crypto Fear & Greed Index, market sentiment rose to a score of 60 on Saturday—up from 50 (Neutral) just a day earlier. The shift comes after a week of uncertainty, where sentiment briefly dipped into Fear before Powell’s comments at the annual Jackson Hole Symposium.

Powell suggested that easing inflation and a cooling labor market may justify a shift in monetary policy, sparking renewed optimism across risk assets, including cryptocurrencies.

Related: Bitcoin Price Surges to $117K After Fed Pivot Hint, Bears Liquidated

Bitcoin Jumps to $117K, Ethereum Nears ATH

The remarks triggered a swift rally across the crypto market:

• Bitcoin (BTC) climbed 5%, reaching $117,300, while triggering $379.9 million in short liquidations, according to CoinGlass data.

• Ethereum (ETH) gained 11.5%, peaking at $4,851—just shy of its 2021 all-time high of $4,878.

Axie Infinity co-founder Jeffrey “Jiho” Zirlin highlighted Ether’s strong reaction, calling it the “most rate-sensitive aspect of crypto.” Lower interest rates, he explained, make DeFi yields more attractive relative to traditional bank deposits, driving capital inflows into Ethereum and related ecosystems.

The Crypto Fear & Greed Index returned to Greed on Saturday after the Federal Reserve Chair Jerome Powell hinted at upcoming rate cuts. Source: alternative.me

Market Expects September Rate Cut

Traders are increasingly betting on a Federal Reserve policy shift. The CME FedWatch Tool shows that 75% of market participants now anticipate a rate cut at the September 17 meeting.

Analysts at The Kobeissi Letter noted, “It appears Fed Chair Powell is setting the stage for a September rate cut.” Historically, lower interest rates have fueled liquidity, benefiting high-growth and risk-on assets like crypto.

Not All Policymakers Convinced

Despite the market optimism, some Fed officials remain cautious. St. Louis Fed President Alberto Musalem told Reuters that he will reassess his position just days before the September decision, noting the risks remain finely balanced.

This caution hasn’t stopped traders from preparing for upside volatility. Author Jason Williams said before the Jackson Hole speech: “If Powell comes in soft and signals rate cuts, we turbo rip.” Similarly, Ran Neuner of Crypto Banter argued the Fed’s decision will set the tone for crypto in the months ahead.

Conclusion: A Pivotal September for Crypto

With Bitcoin breaking above $117K and Ethereum approaching its all-time high, the crypto market appears to be pricing in a more accommodative Fed stance. If the expected September rate cut materializes, analysts suggest the rally could accelerate, potentially setting up new highs for  both BTC and ETH.

For now, investors are watching closely as macroeconomic policy and crypto market cycles collide—making September a decisive month for digital assets.

Related: Ethereum Whale “7 Siblings” Sells $88M in 15 Hours Amid ETH Profit-Taking Surge