Crypto Fear & Greed Index turns 81 to Extreme Greed as BTC surges

Published: 2026-08-25 20:03:00 |

The Crypto Fear & Greed Index has flipped to “extreme greed” at 81 for the first time since late 2024. CoinMarketCap’s gauge jumped from 41 to 81 within a week (36 a month ago) and was still at 81 on Aug. 25, crossing the 80 threshold. The move tracks a Bitcoin-led rally. BTC gained about 24% in seven days, briefly pushed above $80,000, and kept its dominance near 59.7% as total crypto market cap rose to roughly $2.67T (+23.8% on the week). Key catalyst: a leveraged short squeeze. Coverage citing CoinGlass data estimated about $2.7B in bearish crypto liquidations over 24 hours, with more than $1B of BTC shorts closed in roughly one hour (around 92% of liquidations). Macro/flow support also played a role. U.S. Treasury plans to expand 10–30-year bond buybacks (effective Sept. 9) were linked to a weaker dollar and more risk-on positioning toward BTC. Spot Bitcoin ETFs added demand, with reports citing about $1.9B inflows over five trading days ending Aug. 21 (daily net inflows around $517M on Aug. 19 and $606M on Aug. 20). Spot Ether ETFs added about $221M. Alternative.me’s sentiment metric stayed in “greed” (methodology difference), but CoinMarketCap warns that extreme greed can signal an overheated market and higher pullback risk if ETF/inflows slow.

Bullish

The Crypto Fear & Greed Index turning to 81 signals peak bullish sentiment and is consistent with a BTC-led risk-on move. The latest update strengthens the upside case because the rally appears to have been amplified by a large, fast short squeeze (about $2.7B total liquidations, with a major share of BTC shorts closed quickly). That often supports price momentum in the near term. However, traders should treat this as “bullish but vulnerable.” Extreme Greed can precede volatility and pullbacks, especially if the ETF bid or broader inflows cool off. The mixed read from Alternative.me (“greed” not “extreme greed”) suggests sentiment is not universally aligned, so expect potential swings rather than a smooth trend.