Bitcoin Rebounds from “Fear Zone,” but Santiment Warns FUD Could Return

Bitcoin Sentiment Recovers After Sharp Correction

The crypto market is showing signs of stabilization after a midweek sell-off briefly pushed Bitcoin into the “fear” zone on the Crypto Fear & Greed Index.

On Wednesday, Bitcoin (BTC) dropped to $112,350 on Coinbase — a 10% correction from its August peak above $124,000. The pullback sent the sentiment index down to 44, its lowest level in two months.

By Thursday morning, Bitcoin had recovered to $114,500, lifting sentiment back to neutral (50), according to TradingView data.

“As anticipated, crypto markets have begun to rebound,” blockchain analytics firm Santiment wrote, though it cautioned investors to “watch for more FUD” as markets often move opposite to crowd expectations.

Altcoins and Social Buzz Rising

Alongside Bitcoin’s bounce, Santiment highlighted several cryptocurrencies seeing a surge in social interest this week:

• Tether (USDT)

• XRP (XRP)

• Cardano (ADA)

• SNEK, an emerging Solana-based memecoin

Analysts noted that spikes in online discussions can often precede increased volatility.

Related: Analyst Goes All-In on Altcoins as Market Turns Bullish: Is Bitcoin Losing Its Edge?

Experts Weigh In: Sentiment Is “Flickering”

Bitcoin entrepreneur and political adviser David Bailey described Bitcoin sentiment as “flickering like a flame”, oscillating rapidly between euphoria and panic.

“Many Bitcoin have exchanged hands through such emotions,” Bailey added, urging investors to zoom out and stay focused on the long-term picture.

Meanwhile, Augustine Fan, head of insights at trading software provider SignalPlus, said macroeconomic uncertainty has added near-term pressure. She also noted the mixed signals from US Treasury Secretary Scott Bessent, who initially said the government would not add to its Strategic Bitcoin Reserve, but later walked back the statement on X.

Source: https://x.com/TheCryptoExpres/status/1958049657894113523

Market Outlook: Powell’s Speech in Focus

Total crypto market capitalization has recovered to $3.96 trillion, climbing 2% in the past 24 hours. Still, volatility may increase as markets brace for Federal Reserve Chair Jerome Powell’s Jackson Hole speech on Friday.

Historically, Powell’s remarks at the annual event have moved both equities and crypto.

• “Markets brace for Jackson Hole as Powell’s tone could jolt equities and crypto,” BitGo stated.

• Investor Jason Williams said if Powell signals rate cuts are likely, markets could “turbo rip.”

• CNBC analyst Ran Neuner added: “Jackson Hole will shape crypto’s direction moving forward.”

The CME FedWatch tool currently shows an 82% probability of a rate cut on September 17 — though that figure has been trending lower.

Related: Bitcoin Bulls ‘Coming Back’ as Key Metric on Binance Flips to Neutral

Conclusion: Neutral Sentiment, But Storm Clouds Ahead

Bitcoin’s rebound above $114K has pulled sentiment back to neutral, but analysts remain cautious. With Jackson Hole looming and mixed macro signals, short-term volatility is likely.

While traders eye Powell’s remarks for direction, Santiment’s warning that FUD could return quickly underscores the fragile state of market psychology.