The encrypted market sentiment has returned to the “extreme greed” zone. CoinMarketCap’s index of encrypted fear and greed has recently risen to 81, which is the first time since the end of 2024, and means that market risk preferences have risen significantly in a short period of time.

30 Days Raise 45 Points

This indicator remained at 36 a month ago, in the “fear” zone; it was 41 a week ago, close to “neutral”. By this Sunday, the index rises to 81 and then remains at this level, with a cumulative increase of 45 points within 30 days.

The report mentions that this is also a rare rapid emotional transition since CoinMarketCap began tracking the indicator. On February 5, this year, the index fell to five and was at a low level of “extreme fear”. From this low point of view, the market has been able to reverse from extreme pessimism to apparent optimism in about six months.

Bitcoin's up and running.

This round of emotional recovery coincided with the recent strong rise in bitcoin. Reports indicate that bitcoin rose by about 24 per cent within a week, significantly stronger than the broader encryption market, with a more visible concentration of funds to head assets.

The time point for a stronger market appears last Wednesday. The United States Treasury Department stated at that time that it would increase the scale of long-term public debt buy-back operations from $2 billion to $4 billion per buy-back from September 9. It was reported that this arrangement weakened the performance of the United States dollar and facilitated the transfer of some funds to anti-inflation assets such as bitcoin.

ETF Inflow & Flat

With a bitcoin breakthrough of $70 million, the fallback further boosted market volatility. It was reported that, within two to three days, the level of liquidation in the encryption market exceeded $4 billion.

At the same time, the real bitcoin ETF recorded the largest single-day net inflow since May; Bitcoin combined with ETF attracted about $2.3 billion in inflows. The synchronous changes in the financial landscape and the derivatives market are important drivers of the rapid warming of emotions.

However, another platform for long-term tracking of similar indicators, Alternative.me, still defines the market as “greed” and has not yet entered “extreme greed”. Despite some variations in calibre, both sets of indicators indicate a rapid shift in trading sentiment towards optimism.