Crypto sentiment climbed back to ‘Greed’ on Saturday after US Federal Reserve Chair Jerome Powell indicated a potential rate cut in September. Following Powell's dovish remarks at the annual Jackson Hole symposium, the Crypto Fear & Greed Index rose to a score of 60, a significant jump from the previous day’s score of 50, which had dipped into the ‘Fear’ zone earlier in the week. Bitcoin surged by 5%, liquidating nearly $380 million in short positions, while Ether experienced an 11.51% increase, achieving a price of $4,851, near its 2021 all-time high. Market analysts expect a 75% probability of a rate reduction at the upcoming Fed meeting. Many crypto market participants had anticipated this surge based on Powell’s speech, which suggested that conditions may warrant lower rates to support riskier assets like cryptocurrencies. However, St. Louis Fed President Alberto Musalem noted he needs more time before deciding to support an interest rate cut, adding caution to the optimistic sentiment in the crypto market.

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