Overview
- CoinMarketCap's Fear & Greed Index reached 81 on Aug. 24–25, placing sentiment in its 'extreme greed' category for the first time since late 2024.
- The shift followed a sharp Bitcoin rally that gained roughly 24% in a week and briefly pushed prices above $80,000 after breaking a $62,000–$65,000 range.
- U.S.-listed spot Bitcoin and Ether ETFs recorded large inflows during the rally, with about $1.1 billion added over Aug. 19–20 and roughly $1.9 billion across five trading days ending Aug. 21.
- A rapid short squeeze forced leveraged bearish traders to cover positions, with liquidation estimates ranging from about $2.7 billion in 24 hours to more than $4 billion over two to three days.
- Coverage notes differing sentiment measures because methodologies vary and warns that extreme-greed readings have historically come before sharp pullbacks, so traders should expect heightened volatility.