Key Takeaways
- CoinMarketCap’s Crypto Fear & Greed Index surged to 81, marking the first “extreme greed” reading since late 2024
- Bitcoin’s seven-day surge of approximately 24% pushed prices above $80,000 for the first time since May
- Short sellers faced roughly $2.7 billion in liquidations within a 24-hour period as Bitcoin crossed the $70,000 threshold
- Spot Bitcoin ETFs in the United States attracted more than $1.9 billion in capital over five consecutive trading sessions through Aug. 21
- Previous extreme greed levels preceded a massive $19 billion leveraged position wipeout in October 2025
The cryptocurrency market has experienced a dramatic sentiment shift from fearful to extremely greedy in under two weeks, propelled by Bitcoin’s powerful rally, widespread liquidation of bearish positions, and strong inflows into U.S.-based exchange-traded products.
On Aug. 24, CoinMarketCap’s Fear and Greed Index climbed to 81 and maintained that elevated position through the next day. Just seven days prior, the indicator registered 41, while a month earlier it stood at 36. According to CoinMarketCap’s methodology, any reading exceeding 80 qualifies as “extreme greed.”
Meanwhile, Alternative.me’s competing sentiment gauge recorded 74 on Tuesday, indicating greed but remaining below its extreme greed benchmark. The divergence between these two metrics stems from their use of different data inputs and calculation methods.
Bitcoin’s Breakout Triggers Massive Short Squeeze
Bitcoin escaped its prolonged consolidation zone between $62,000 and $65,000 on Aug. 19. When prices climbed above $70,000, leveraged short sellers were compelled to close their positions by purchasing Bitcoin, accelerating the upward momentum.
According to CoinGlass analytics, bearish positions worth approximately $2.7 billion were liquidated in a single 24-hour window. Short positions accounted for roughly 92% of nearly $3 billion in total liquidations affecting over 172,000 individual traders.
Bitcoin touched an intraday peak around $81,255 before settling near $79,000 on Aug. 25, representing a weekly gain of approximately 24%.
The aggregate cryptocurrency market capitalization reached roughly $2.67 trillion on Aug. 24, reflecting a seven-day increase of about 23.8%. Bitcoin maintained nearly 60% market dominance throughout this period.
Institutional Money Flows Strengthen the Uptrend
U.S. spot Bitcoin exchange-traded funds registered approximately $517 million in net inflows on Aug. 19, followed by roughly $606 million on Aug. 20, based on SoSoValue tracking data. These two sessions alone brought over $1.1 billion into the investment vehicles.
During the five-day trading period concluding Aug. 21, these products captured approximately $1.9 billion in fresh capital. Spot Ethereum ETFs contributed an additional $221 million on Aug. 20.
Market observers emphasized that sustained organic buying pressure will be essential once the forced short covering subsides. Nicolai SĆøndergaard, senior research analyst at Nansen, noted that while the price movement demonstrates improved market structure, it hasn’t definitively confirmed a complete market cycle reversal.
Lacie Zhang, research analyst at Bitget Wallet, stressed that continuous fresh spot demand will be necessary for Bitcoin to sustain levels above $80,000.
Alternative cryptocurrencies have experienced significant price swings as well. Dogecoin posted weekly gains of approximately 24%. Memecoin Thinking Cat surged 131% over seven days, Cash Cat increased 113%, and Dog (Bitcoin) nearly doubled in value.
The Alternative.me index last reached comparable levels on Oct. 5, 2025ājust five days before a market crash that eliminated approximately $19 billion in leveraged positions during a single trading session.
Federal Reserve Chair Kevin Warsh is expected to deliver remarks at Jackson Hole on Friday, with market participants closely monitoring for any commentary regarding interest rate policy and inflation outlook.
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