The cryptocurrency market has entered extreme greed for the first time since late 2024, with CoinMarketCap's sentiment index reaching 81 after Bitcoin gained about 24% in seven days.
Fear and Greed Index Reaches 81
CoinMarketCap's Fear and Greed Index registered 81 late on Aug. 24 and remained at the same level the following day, placing cryptocurrency sentiment in its extreme greed category. One week earlier, the gauge stood at 41, while its reading a month ago was 36. The latest figure represents a 40-point increase over seven days and a 45-point rise across the month, reversing the caution seen during much of the first half of 2026.
Extreme greed begins at 80 under CoinMarketCap's classification. A reading above that threshold points to strong buying interest and high confidence, although the platform says elevated sentiment may also indicate that the market is overheated and vulnerable to a correction. CoinMarketCap builds the index from five groups of data: price momentum, volatility, derivatives activity, market composition, and social and engagement information.
From Extreme Fear to Extreme Greed
February offered the opposite picture. The index fell to 5 on Feb. 5, its lowest point of 2026 and a level associated with extreme fear. Its advance from 5 to 81 has carried the gauge from its most bearish category to its most bullish one in less than seven months. As reported in July, Bitcoin traded near $58,000 to $60,000 while sentiment readings sat in the low teens, with spot Bitcoin exchange-traded funds recording $4.5 billion in June outflows.
Bitcoin's 24% Rally Drives Sentiment
Bitcoin supplied much of the price momentum behind the latest reading, climbing about 24% over the week and briefly moving above $80,000 for the first time since May. The cryptocurrency traded near $79,000 on Aug. 25 after easing from an intraday high around $81,255. CoinMarketCap placed the total cryptocurrency market value at about $2.67 trillion on Aug. 24, up 23.8% over seven days.
The rally began after Bitcoin broke out of a trading range near $62,000 to $65,000 on Aug. 19. As the price passed $70,000, traders holding leveraged bearish positions had to buy back Bitcoin to close their trades, adding forced demand to the advance. According to CoinGlass figures, approximately $2.7 billion in bearish crypto positions were liquidated over 24 hours, with more than $1 billion of Bitcoin shorts closing within about one hour.
Treasury Buybacks Preceded the Breakout
The U.S. Treasury announced on Aug. 19 that it would at least double the maximum size of liquidity-support buybacks for long-dated government securities. Beginning Sept. 9, the purchase cap will increase from $2 billion to at least $4 billion per operation. Bond yields and the U.S. dollar weakened after the announcement, while Bitcoin rose from an intraday low near $64,100 to roughly $69,500 within 12 hours.
The 30-year Treasury yield fell from a 19-year high above 5.34% to about 5.19%, and the 10-year yield declined to 4.647%. Treasury buybacks differ from Federal Reserve quantitative easing because the department funds the purchases through debt issuance rather than creating central-bank reserves. Market participants still linked the announcement to easier financial conditions and subsequent demand for risk assets.
U.S. Bitcoin ETFs Add Spot Demand
U.S.-listed spot Bitcoin ETFs recorded about $517 million in net inflows on Aug. 19, followed by approximately $606 million on Aug. 20. The two sessions brought more than $1.1 billion into the funds as Bitcoin moved through $70,000 and $75,000. Across the five trading days ending Aug. 21, the products attracted approximately $1.9 billion. Spot Ether ETFs added about $221 million on Aug. 20, while XRP and Solana investment products received approximately $13 million and $15 million, respectively. Combined flows into Bitcoin and Ether funds reached roughly $2.3 billion during the rally period.
