The Crypto Fear and Greed Index hit 74 on August 25, a level last recorded on October 5, 2025. Bitcoin (BTC) set its all-time high the following day.

Sentiment has since eased to 65. The climb ended one of the longest stretches of pessimism in the index’s eight-year history.

Sentiment Ends Its 3rd-Longest Slump on Record

The gauge measures market mood from 0 (extreme fear) to 100 (extreme greed). Alternative.me has published it daily since February 2018.

Readings stayed below 50 for 106 consecutive days through August 19. Only the 2022 bear market and a 107-day run this January lasted longer.

The slump ran deeper than that streak suggests. Sentiment sat below 50 on 213 of the 214 days from January 18. A neutral print on May 5 was the only break.

The index has averaged 24.2 across 2026. It bottomed at 5 on February 12 and had not topped 60 since January 15.

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Forced Selling Turned a Bond Market Move Into a Rally

The rally behind the reversal traced back to Washington. The US Treasury doubled its long-end debt buybacks on August 19, lifting each operation to at least $4 billion.

Bearish traders were caught off guard. Short liquidations reached $2.74 billion on August 20, wiping out 172,202 traders.

The squeeze then ran for consecutive sessions. Shorts absorbed a further $1.06 billion the next day, against $174.41 million in long liquidations, BeInCrypto reported.

Prices followed. Bitcoin has climbed 23% over the past week, according to BeInCrypto Markets. BTC traded near $78,880 on August 26, still 37% below its record.

Nonetheless, demand measures have not confirmed the shift. BeInCrypto reported that exchange-traded funds remain net sellers for 2026, with holdings down roughly 92,000 BTC.

Coinbase premiums for Bitcoin and Ethereum (ETH) also stayed below zero. Both metrics improved through August without crossing into positive territory.

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Source: BeInCrypto