{"id":26340,"date":"2025-08-21T14:02:01","date_gmt":"2025-08-21T11:02:01","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=26340"},"modified":"2025-08-22T17:53:38","modified_gmt":"2025-08-22T14:53:38","slug":"market-emerges-from-fear-zone-ahead-of-fed-chairs-speech","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/market-emerges-from-fear-zone-ahead-of-fed-chairs-speech\/","title":{"rendered":"Market Emerges from &#8216;Fear&#8217; Zone Ahead of Fed Chair&#8217;s Speech"},"content":{"rendered":"<p>The price of the leading cryptocurrency rebounded after dropping to around $112,000. Market sentiment shifted from &#8216;fear&#8217; to &#8216;neutral,&#8217; though analysts at Santiment caution about potential volatility.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udcc8 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&#8217;s expectations:<\/p>\n<p>\ud83d\udd17 Link to monitor crowd FOMO &#038; FUD: <a href=\"https:\/\/t.co\/4h3mmr1ENp\">https:\/\/t.co\/4h3mmr1ENp<\/a> <a href=\"https:\/\/t.co\/hEExe7Byr6\">https:\/\/t.co\/hEExe7Byr6<\/a><\/p>\n<p>\u2014 Santiment (@santimentfeed) <a href=\"https:\/\/twitter.com\/santimentfeed\/status\/1958258955148476655?ref_src=twsrc%5Etfw\">August 20, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>On August 20, Bitcoin&#8217;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.<\/p>\n<p>At the time of writing, the asset&#8217;s price stands at $113,407 (down 0.3% over the past day), according to <a href=\"https:\/\/www.coingecko.com\/en\/coins\/bitcoin\">CoinGecko<\/a>. The total cryptocurrency market capitalization increased by 0.1% in a day, reaching $3.98 trillion.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXdT9_kCrRePF9r2x3d_lhKVWFgFGDfucSbSg-6RR-vPgejXXZeBSAPNkBoWpxYGfrM18hhTl3FzLDC3bfp4X-gKpMBWrZyqzniAtahhiBlHbTGqXZI3cPjh1317OPjj9A-oXE3Bqw?key=4ksDnfkz1Y1nbt17ZBM8LQ\" alt=\"Market Emerges from 'Fear' Zone Ahead of Fed Chair's Speech\"\/><figcaption class=\"wp-element-caption\">15-minute BTC\/USD chart on Binance. Source: <a href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSD\/?exchange=BINANCE\">TradingView<\/a>.<\/figcaption><\/figure>\n<p>The popular indicator rose to 50.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXc_f-z3xSV2mENmGVUtKUGrfh4r4BAXt22SP-qb11BuycOe0WNpYPBzyaET1ncVZoIXOots77OyPCQSNVXQMGOGkzyMeLaQCw8FYupNIBiX026rFAqofbm3YsbHpmplCUvfqAMiiQ?key=4ksDnfkz1Y1nbt17ZBM8LQ\" alt=\"Market Emerges from 'Fear' Zone Ahead of Fed Chair's Speech\"\/><figcaption class=\"wp-element-caption\">Cryptocurrency Fear and Greed Index. Source: <a href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\">Alternative<\/a>.<\/figcaption><\/figure>\n<p>Santiment analysts stated that the rebound was anticipated. They advised caution regarding <span data-descr=\"fear, uncertainty, and doubt\" class=\"old_tooltip\">FUD<\/span> and reminded that the market often moves contrary to crowd expectations.<\/p>\n<p>According to the platform, social interest has increased for Bitcoin, USDT, XRP, ADA, and the meme coin SNEK.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udde3\ufe0f Crypto assets showing a rising level of interest today include:<\/p>\n<p>\ud83e\ude99 Bitcoin <a href=\"https:\/\/twitter.com\/search?q=%24BTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$BTC<\/a> 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,\u2026 <a href=\"https:\/\/t.co\/GvcTVCTGcJ\">pic.twitter.com\/GvcTVCTGcJ<\/a><\/p>\n<p>\u2014 Santiment (@santimentfeed) <a href=\"https:\/\/twitter.com\/santimentfeed\/status\/1958217163392577673?ref_src=twsrc%5Etfw\">August 20, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Crypto entrepreneur David Bailey <a href=\"https:\/\/x.com\/DavidFBailey\/status\/1957866360383426835\">noted<\/a> the rapid shift in market sentiment from euphoria to panic and advised looking at the bigger picture.<\/p>\n<h2 class=\"wp-block-heading\">Regulatory Background<\/h2>\n<p>The market correction was triggered by the release of the <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20250820a.htm\">minutes<\/a> from the Federal Reserve&#8217;s July meeting. According to the document, only two members of the <span data-descr=\"Federal Open Market Committee of the US Federal Reserve\" class=\"old_tooltip\">FOMC<\/span> \u2014 Christopher Waller and Michelle Bowman \u2014 supported a 25 basis point rate cut.<\/p>\n<p>The majority did not support this initiative.<\/p>\n<p>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.<\/p>\n<p>The next significant event for the market will be Federal Reserve Chair Jerome Powell&#8217;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&#8217;s future policy, particularly regarding interest rates.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;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,&#8221; <\/em><a href=\"https:\/\/x.com\/GoingParabolic\/status\/1958007366755942812\"><em>believes<\/em><\/a><em> analyst Jason Williams.<\/em><\/p>\n<\/blockquote>\n<p>Data from <a href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\">CME FedWatch<\/a> shows an 81.2% probability of a rate cut in September, though this figure is gradually decreasing. Powell&#8217;s &#8220;dovish&#8221; rhetoric could spur growth, while a &#8220;hawkish&#8221; stance is likely to provoke a negative reaction.<\/p>\n<p>Earlier, analysts at Presto Research <a href=\"https:\/\/forklog.com\/en\/news\/presto-labels-bitcoins-record-surge-as-an-inflationary-illusion\">described<\/a> Bitcoin&#8217;s record growth as an &#8220;inflationary illusion.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The price of Bitcoin rebounded after dropping to around $112,000. Market sentiment shifted from &#8216;fear&#8217; to &#8216;neutral,&#8217; though analysts at Santiment caution about potential volatility<\/p>\n","protected":false},"author":1,"featured_media":26341,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1249,1145,1478],"class_list":["post-26340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-federal-reserve-system","tag-market-analysis","tag-santiment"],"aioseo_notices":[],"amp_enabled":true,"views":"198","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=26340"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26340\/revisions"}],"predecessor-version":[{"id":26342,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26340\/revisions\/26342"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26341"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=26340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=26340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=26340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}