Cryptocurrency analysts name the reason for bitcoin’s growth after a sharp drop

Sentiment on the crypto market has moved out of the «fear zone» and returned to neutral after prices recovered on Thursday. The day before, Bitcoin BTC $114,129.00 Mezo Wrapped BTC -0.41% Market capitalization $41.25 million VOL. 24 hours $1.54 billion fell to $ 112,350 on the Coinbase crypto exchange, a 10% correction from the August peak of more than $ 124,000. This brought the fear and greed index down to 44 points, a two-month low. However, on Thursday, BTC recovered part of the decline and rose above $ 114,500, and the sentiment index returned to the level of 50.

Santiment analysts noted that the market has begun to recover, but warned of the possible emergence of «FUD» and new fluctuations. At the same time, increased social attention was paid to Bitcoin, Tether, XRP XRP $2.90 XRP 0.67% Market capitalization $172.17 billion VOL. 24 hours $0.39 billion , Cardano ADA $0.87 Cardano 2.43% Market capitalization $31.58 billion VOL. 24 hours $0.19 billion , and the SNEK meme-coin. Entrepreneurs emphasize the volatility of market sentiment, ranging from euphoria to panic, urging «to look wider and maintain focus.»

According to SignalPlus experts, the crypto market was restrained by macroeconomic factors last week. Additional pressure was exerted by US Treasury Secretary Scott Bessent’s statement that the government would not buy more BTC for the strategic reserve. Later, he partially retracted these words, stating that «budget-neutral» purchases are possible.

The total capitalization of the crypto market increased by 2% over the day and reached $ 3.96 trillion. At the same time, analysts emphasize that the risk of new sharp movements remains in the coming days. Investors' attention is now focused on Fed Chairman Jerome Powell’s speech at the Jackson Hole symposium on Friday.

The market is waiting for signals on monetary policy. If Powell hints at the likelihood of a rate cut in September, it could give a strong boost to growth. However, the CME FedWatch tool currently estimates the chance of such a move at 82%, and this figure has been declining recently.