The Crypto Fear & Greed Index has hit 81, entering the 'Extreme Greed' zone for the first time since December 17, 2024 — a span of 616 days. Bitcoin has surged over 22% in the past 7 days. This reading is significant for crypto holders today, as it emerges after a period of sharp sentiment swings that have preceded underlying data and historically has occurred just before corrections.
From February's Low of 5 to Sunday's High of 81
This figure reflects how rapidly sentiment has shifted. A month ago, the same reading was 36, and a week ago it was 41, both driven by fear. On Sunday, it hit 81 and has held there since, representing a 45-point jump over three decades, which CoinMarketCap called the fastest sentiment shift this year—from one extreme to the other.
Looking at earlier periods, the contrast in this trajectory becomes obvious. The index bottomed at 5 on February 5th, the lowest point in 2026 and arguably the capitulation limit for this gauge. Moving from that level to 81 on Sunday marks a complete journey from panic selling to greed in six months.
Not all trackers assign the same rating. Alternative.me, which has tracked crypto longer, still rates the sentiment as 'Greed' rather than 'Extreme Greed' (about 6% lower than the 81 mark). But both are moving in the same direction.
Price Jump Triggered by Unexpected Treasury Announcement, Not ETF Headline
The mood shift followed Bitcoin's price surge, which began with a policy decision few in crypto trading circles had heard of. On Wednesday, Treasury Secretary Scott Bessent doubled the size of the department's long-term bond buyback operations, raising each of the large operations to $2-4 billion. The next day, he told CNBC the final amount could be raised further.
The catch, however, is that none of this cash has moved yet. They are part of a larger program that will only begin on September 9th and run until November 4th. The tone changed, not the structure. Long-term bond yields, which had approached near two-decade highs amid weak demand for 30-year bonds, plunged within minutes as traders caught the signal of likely market support.
Crypto did not give back those gains as bond yields gradually rose on Thursday. Traders who had shorted Bitcoin, betting on tighter market conditions, were caught offside by their long positions. The next day, around $3 billion worth of shorts were liquidated, driving the market price higher with each forced purchase.
Bitcoin's 24% Weekly Surge Leaves Rest of Market Behind
Bitcoin jumped roughly 24% for the week, posting its best weekly leap since 2024, and the entire market failed to keep pace, ceding more ground to Bitcoin dominance. In a recent report, CryptoQuant says the rally has flipped the firm's gauge readings: the Bull Score rose from 30 to 80 over the week, hitting its highest since October 2025, and eight out of ten underlying signals are now pointing bullish.
CryptoQuant stated the market has entered an early stage of a new bull market but refrained from an official announcement. The firm's target is a weekly close above Bitcoin's 365-day moving average, currently near $83,000. LMAX Group strategist Joel Kruger pointed to the May 2026 high of $82,820 as a threshold, saying a break above would confirm for some that the cycle low is in and the path to $100,000 is open.
Why This Frenzy Worries Skeptics
Such a rapid ascent energizes both bulls and bears. Funding rates, the fee leveraged traders pay to hold long positions, hit a 20-month high this week, which has characterized most of Bitcoin's sharper correction periods over the past two years, as it suggests the rally is built on borrowed money.
Large investors have already begun offloading holdings amid the surge. According to CryptoQuant, short-term Bitcoin holders realized profits of roughly $1.2 billion between August 20 and 22, including a record $614 million on August 20th. Exchange inflows spiked to around 53,000 BTC, the highest since June, and there are more coins in a fitting spot for them to sell. Traders' unrealized profit has reached 20.5%, and CryptoQuant noted that the last time this metric hit 19%, in early May, Bitcoin fell roughly 30%.
