Bitcoin FOMO Hits Two-Year High as Price Surges Past $87K

Bitcoin's price surge has sparked a wave of optimism in the market, with sentiment shifting sharply into bullish territory. The cryptocurrency broke past $87,300, driven by a major short squeeze and a spike in social volume.

Data from Santiment shows that crowd commentary around Bitcoin and the broader market reached its highest concentration of positive language since December 2024. The Crypto Fear and Greed Index also climbed from 51 to 78 on Sept. 21, moving into the upper end of the greed category.

A post on X by Santiment noted that bullish keywords such as 'higher', 'bullish' and 'above' overwhelmed bearish sentiment on social channels. The Fear of Missing Out (FOMO) metric has risen to its highest level in nearly two years, reinforcing the view that traders are increasingly chasing the rally.

The sudden upward momentum was amplified by heavy liquidations in the derivatives market, with $648 million in short positions wiped out over a 24-hour period. This forced buying coincided with a 39% jump in total crypto trading volume, accelerating price gains and encouraging further FOMO among both retail and institutional participants.

Despite the wave of short liquidations, market leverage continued to build as open interest climbed 7.6% to roughly $156 billion. This progression highlights a clear pattern: an initial short squeeze sparked higher trading volume, which ultimately drew leveraged traders back in to chase the rally.