Cryptocurrency market sentiment has entered the “extreme greed” zone for the first time since 2024.

Decripto, a blockchain media outlet, reported on Aug. 25 (local time) that CoinMarketCap’s Crypto Fear and Greed Index hit 81 and stayed at the same level on the day. The index classifies readings of 80 or higher as extreme greed.

The turnaround was especially fast. The index stood at 36 a month ago in the “fear” zone, and it was still at 41 a week ago, a “neutral” level. It then jumped to 81 on Aug. 24 and held at the same level on Aug. 25. That is a rise of 45 points in 30 days.

A similar pattern appeared in other indicators. Alternative.me’s measure is still in the “greed” stage, but it likewise shows market sentiment rapidly tilting bullish.

The swing is larger compared with the year’s low. The Fear and Greed Index fell to 5 on Feb. 5, its lowest level this year. The market was in “extreme fear” at the time, but it moved to the opposite zone by rising to 81 in about six months.

Bitcoin was at the center of the shift in sentiment. Bitcoin has climbed about 21 percent over the past week, outpacing gains in the overall cryptocurrency market. That has increased bitcoin’s share of the overall digital asset market.

A direct trigger was cited as the U.S. Treasury’s announcement of an expansion in long-term bond buybacks. The U.S. Treasury said it will double the size of each long-term bond buyback to $4 billion from $2 billion starting on Sept. 9. The step, in which the government repurchases its own bonds to support demand, fueled dollar weakness, followed by an explanation that some investors have begun viewing bitcoin again as an inflation hedge.

The price surge also affected derivatives markets. As bitcoin broke above $70,000, investors’ short positions that bet on declines were liquidated in large numbers. Over 2 to 3 days, cryptocurrency short-position liquidations exceeded $4 billion. Traders who had expected declines moved to buy again to limit losses, adding to upward pressure.

Exchange-traded fund (ETF) flows also supported the recovery in sentiment. Spot bitcoin ETFs logged their biggest daily inflow since May, and combined inflows into spot bitcoin and ether ETFs were estimated at about $2.3 billion.

In this situation, the market is watching whether bitcoin strength spreads across the broader cryptocurrency market. The current rebound was led by bitcoin, while the rest of the market has lagged. As a result, the next focus is whether the sharp swing in sentiment indicators ends as short-term overheating or whether ETF inflows and price gains extend further.