Crypto Fear and Greed Index Hits Extreme Greed First Time Since 2024

Cryptocurrency market sentiment has surged into "extreme greed" for the first time in over 600 days, driven by a sharp Bitcoin rally and a significant policy signal from the U.S. Treasury. The CoinMarketCap Fear and Greed Index reached 81 on August 24, marking the highest reading since December 17, 2024, and representing a dramatic shift from the "extreme fear" levels seen earlier this year.

The rapid ascent in sentiment followed a week in which Bitcoin's price jumped approximately 24%, its best weekly performance since 2024. The rally pushed Bitcoin above $80,000 for the first time since May, with the total cryptocurrency market capitalization rising to about $2.67 trillion. The price action was significantly fueled by the liquidation of roughly $3 billion in short positions, as traders who had bet against Bitcoin were forced to buy back the asset to cover their losses.

A key catalyst for the rally was an announcement on August 19 from U.S. Treasury Secretary Scott Bessent, who doubled the maximum size of the department's long-duration bond buybacks to at least $4 billion per operation. The program, set to begin September 9, is intended to improve liquidity in the government...