Crypto Market Enters 'Extreme Greed' with Index at 81

The cryptocurrency market has reached 'extreme greed' for the first time since late 2024, as indicated by the Crypto Fear and Greed Index, which hit 81 late Sunday and remains there today. This marks a significant shift from a year spent in 'fear' territory. A month ago, the index was at 36, indicating 'fear,' and a week ago it was at 41, barely neutral. The 45-point increase in 30 days reflects a rapid sentiment change, the fastest recorded between these extremes since tracking began. Alternative.me's index also shows a shift to 'greed,' though not extreme. The sentiment change aligns with Bitcoin's performance, which gained approximately 24% in a week, contrasting with slower growth in the broader crypto market. This shift was triggered by the U.S. Treasury's announcement to double long-bond buybacks from 2 billion to 4 billion per operation starting September 9, weakening the dollar and driving investors towards Bitcoin as an inflation hedge. As Bitcoin surpassed 70000, a short squeeze liquidated over 4 billion in crypto shorts within two to three days, leading to significant inflows into Bitcoin ETFs, which recorded their largest single-day inflows since May, with Ethereum and Bitcoin ETFs together attracting around 2.3 billion in assets.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.