Investor sentiment in the cryptocurrency markets has significantly improved over the past two weeks. The Crypto Fear and Greed Index, which stood at 27 on August 12 in the 'fear' zone, rose to 74 on Tuesday, entering the 'greed' zone. Then on Wednesday, the index fell to 65.
The index reaching 74 marks its highest level since just before the major market crash in October 2025. The last time a similar level was observed was on October 5, 2025. Only five days after that date, a sharp sell-off occurred, resulting in the liquidation of leveraged positions worth approximately $19 billion.
The change in market sentiment is also reflected in the price movement of crypto assets. Bitcoin, which traded below $68,000 last week, quickly approached the $80,000 mark. Some major cryptocurrencies even showed gains of up to 70%.
Meme tokens are particularly standing out in the altcoin market. While Dogecoin has risen about 24% over the past week, some smaller, lower-volume meme coins showed even sharper increases. Thinking Cat surged by 131%, Cash Cat by 113%, and Dogecoin nearly doubled in price.
Analysts view the capital flow into tokens with low market capitalization and trading volume as a sign of high risk appetite. However, this movement is also interpreted as an increase in the risk of a correction due to an overheated market.
The next major test for the markets is expected to be Federal Reserve Chairman Kevin Warsh's first speech at the Jackson Hole meeting on Friday. Warsh's remarks regarding monetary policy are reported to have a direct impact on the risk appetite in the cryptocurrency market.
*This is not investment advice.
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