Market Emerges from ‘Fear’ Zone Ahead of Fed Chair’s Speech

The price of the leading cryptocurrency rebounded after dropping to around $112,000. Market sentiment shifted from ‘fear’ to ‘neutral,’ though analysts at Santiment caution about potential volatility.

📈 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

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

At the time of writing, the asset’s price stands at $113,407 (down 0.3% over the past day), according to CoinGecko. The total cryptocurrency market capitalization increased by 0.1% in a day, reaching $3.98 trillion.

The popular indicator rose to 50.

Santiment analysts stated that the rebound was anticipated. They advised caution regarding FUD and reminded that the market often moves contrary to crowd expectations.

According to the platform, social interest has increased for Bitcoin, USDT, XRP, ADA, and the meme coin SNEK.

🗣️ Crypto assets showing a rising level of interest today include:

🪙 Bitcoin $BTC is trending due to its frequent discussion as a leading cryptocurrency in investment strategies, market trends, and comparisons with other tokens like ETH. Conversations focus on buying,… pic.twitter.com/GvcTVCTGcJ

— Santiment (@santimentfeed) August 20, 2025

Crypto entrepreneur David Bailey noted the rapid shift in market sentiment from euphoria to panic and advised looking at the bigger picture.

Regulatory Background

The market correction was triggered 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 — supported a 25 basis point rate cut.

The majority did not support this initiative.

Bowman noted that inflation is nearing 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 weakening.

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

“Markets have already priced in a scenario where Powell does not hint at easing policy in September. However, if he signals potential easing, it could trigger a sharp rise,” believes analyst Jason Williams.

Data from CME FedWatch shows an 81.2% probability of a rate cut in September, though this figure is gradually decreasing. Powell’s “dovish” rhetoric could spur growth, while a “hawkish” stance is likely to provoke a negative reaction.

Earlier, analysts at Presto Research described Bitcoin’s record growth as an “inflationary illusion.”