Crypto markets exhibited signs of recovery on Thursday after briefly entering the ‘fear’ zone when Bitcoin dropped to a price of $112,000 earlier in the week. While sentiment has shifted back to neutral as the asset reclaims its $114,500 level, analysts remain cautious, noting potential for more market volatility. Bitcoin (BTC) saw a significant correction following an August peak of around $124,000, ultimately dipping to $112,350 before rebounding. This drop triggered the Bitcoin Fear & Greed Index to 44, its lowest point in two months. However, the market has begun to recover, with Santiment highlighting several crypto assets experiencing increased social interest, including Bitcoin, Tether (USDT), XRP (XRP), Cardano (ADA), and an obscure memecoin called SNEK. Analysts caution that this rebound is likely temporary, urging investors to remain vigilant for potential ‘FUD’ (fear, uncertainty, and doubt) scenarios and market movements contrary to prevailing expectations. The influence of macroeconomic factors like the US Treasury Secretary’s statement on Bitcoin purchasing plans and the anticipation of Federal Reserve Chair Jerome Powell’s speech at Jackson Hole are expected to significantly impact the markets this week. While market sentiment remains uncertain, investors are closely watching for any significant changes in Fed policy direction that could propel the crypto market either up or down.