Bitcoin Surges to Three-Month High Before Dropping Amid Hawkish Fed Signals

The cryptocurrency market experienced a rollercoaster week, with Bitcoin reaching a three-month high of $81,455 before dropping to $78,200 following Fed Chair Kevin Warsh's speech at the Jackson Hole symposium.

In the first half of the week, growth continued, and Bitcoin rose due to strong demand through spot ETFs. However, after Warsh's speech, investors began to price in a more hawkish Fed stance and high bond yields.

The market overall remained in the greed zone, not panic, despite the decline in Bitcoin's value. The total cryptocurrency market capitalization held in the $2.58-2.71 trillion range for the week, with Bitcoin's capitalization staying around $1.57 trillion and its share of the crypto market hovering at about 60%.

The fear and greed index started at 81, rose to 82 by Thursday, and after Jackson Hole dropped to the 78-75 range by Sunday. Even after the negative news impulse, investors maintained a distinctly greedy mood.