Key facts
- The Crypto Fear and Greed Index reached a score of 81, signifying "extreme greed."
- This is the highest reading for the index since early 2024.
- The index has shown a rapid sentiment swing, moving from "fear" (36) a month ago to "extreme greed" (81) in just 30 days.
- Bitcoin's price has risen approximately 24% in the past week, outperforming the general crypto market.
- A significant short squeeze occurred, liquidating over $4 billion in crypto shorts.
- Bitcoin and Ethereum ETFs experienced substantial inflows, collectively attracting about $2.3 billion.
The cryptocurrency market has entered a state of "extreme greed" for the first time since early 2024, as indicated by the Crypto Fear and Greed Index, which reached a score of 81. This marks a significant turnaround from a month ago when the index registered 36, in the "fear" territory, and a week ago at 41, in the "neutral" zone.
The rapid ascent to 81 is the fastest sentiment shift of the year, moving from extreme fear to extreme greed. The index had previously bottomed out at 5 on February 5, deep in "extreme fear." This arc from capitulation to greed within six months typically coincides with substantial price movements.
The sentiment shift aligns with a recent surge in Bitcoin's price, which gained approximately 24% in a week, outperforming the broader crypto market. This rally is partly attributed to the U.S. Treasury's announcement to double its long-bond buybacks, which weakened the dollar and potentially positioned Bitcoin as an inflation hedge. The market also saw a significant short squeeze, liquidating over $4 billion in crypto shorts as Bitcoin surpassed $70,000. Furthermore, Bitcoin and Ethereum ETFs recorded their largest single-day inflows since May, collectively pulling in about $2.3 billion.