Крипторынок переходит в стадию «нейтральности» перед ключевым выступлением главы ФРС Translation: Cryptocurrency market shifts to a neutral stage ahead of key speech by Fed Chair

The price of the leading cryptocurrency has rebounded after a drop to approximately $112,000. Market sentiment shifted from «fear» to «neutral,» although analysts from Santiment caution about potential volatility.

On August 20, Bitcoin’s price corrected by 10% from its August peak of $124,000. The Fear and Greed Index fell to 44, marking the lowest level in two months.

At the time of writing, the asset is priced at $113,407 (-0.3% over the day), as per CoinGecko. The total market capitalization of cryptocurrencies rose by 0.1% on the day, reaching $3.98 trillion.

The popular indicator increased to 50.

Santiment analysts indicated that the rebound was anticipated. They advised caution against FUD and reminded that markets frequently move contrary to public expectations.

According to the platform, there has been a rise in social interest around Bitcoin, USDT, XRP, ADA, and the meme coin SNEK.

Cryptocurrency entrepreneur David Bailey noted the rapid change in market sentiment from euphoria to panic and suggested focusing on the bigger picture.

The market correction was prompted by the release of the minutes from the Federal Reserve’s July meeting. According to the document, only two members of the FOMC — Christopher Waller and Michelle Bowman — advocated for a 25 basis point rate cut.

The majority did not support this initiative.

Bowman noted that inflation is approaching the target level of 2%. She also pointed to a slowdown in economic activity and signs of a weakening labor market. In her view, a gradual rate cut would protect the economy from further deterioration.

The upcoming significant event for the market will be the speech by Federal Reserve Chair Jerome Powell at the Jackson Hole conference on August 22. His remarks could impact both stock and cryptocurrency markets. Investors are looking for signals regarding the regulator’s future policies, particularly concerning interest rates.

“Markets have already priced in a scenario where Powell won’t hint at a policy easing in September. However, if he signals a possible easing, it could lead to a sharp rise,” said analyst Jason Williams.

Data from CME FedWatch shows an 81.2% probability of a rate cut in September, although this figure is gradually decreasing. Powell’s “soft” rhetoric could trigger a rise, while a more hawkish stance would likely elicit a negative reaction.

It is worth noting that analysts at Presto Research described Bitcoin’s record growth as an “inflationary illusion.”