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For the first time since 2024, the cryptocurrency market has turned from fear to "extreme greed"

2026-08-26 12:37:02
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Cryptocurrency market sentiment entered the "extreme greedy" zone for the first time since the end of 2024

According to the Cryptocurrency Fear and Greed Index, the market entered the "extreme greedy" zone for the first time since the end of 2024. The index hit 81 on Coinmarketcap late Sunday night and continues to this day, breaking the 80-point green range threshold-a threshold that typically corresponds to panic buying and fanaticism. This is a stunning reversal for a market that has been mired in "fear" territory over the past year and occasionally only "neutral".

The speed of this change is particularly noteworthy. A month ago, the index was still stuck at 36 points-in the "fear" range. A week ago, it rose to 41, barely reaching "neutral". On Sunday, it jumped to 81 points and remains so far, soaring 45 points in 30 days, wiping out almost everything that defined market caution in the first half of 2026.

This is also the fastest shift in emotions between two extremes, and the only move since the index tracked that has jumped directly from "extreme fear" to "extreme greed." Another agency's tracking method positions the index in "greedy" mode (not reaching the "extreme" level, a 6% difference), but the momentum of the mood change is consistent: Traders are turning extremely bullish at an extremely rapid rate, similar to what happened in 2021.

The index hit an annual low of 5 points on February 5 and was mired in "extreme fear." From that bottom to this week's 81 points, a complete cycle from complete surrender to all-out greed was completed in just six months-a trend that is usually accompanied by drastic repricing in the spot market.

This shift in sentiment is in sync with Bitcoin's rise, but Bitcoin has performed well ahead of the rest of the market. Bitcoin rose by about 24% in a week, while the overall cryptocurrency market saw a smaller increase. This difference is reflected in the continued rise in Bitcoin's share of total market value.

The breakthrough began last Wednesday, when the U.S. Treasury Department announced that it would double the size of long-term bond buybacks (the government's purchase of its own debt to support demand) from $2 billion at a time to $4 billion, effective September 9. The move weakened the U.S. dollar and pushed investors to view Bitcoin as an inflation hedge. The same situation forces bearish traders to cover losses. When Bitcoin exceeded $70,000, a short squeeze cleared more than $4 billion in short cryptocurrency positions in two to three days. The Bitcoin ETF recorded its largest single-day inflow since May, while Ethereum and Bitcoin ETF combined attracted approximately $2.3 billion in assets.

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