Crypto Market Sentiment Hits 74 as Bitcoin Struggles to Clear $80,000

The Crypto Fear and Greed Index has skyrocketed to 74, its highest reading in about 10 months. This swing from extreme fear to greed occurred within a three-week period, during which Bitcoin's price rose from below $68,000 to near $80,000 but remains under that mark at around $78,600.

The Fear and Greed Index measures volatility, trading momentum, social media activity, Bitcoin's share of the total crypto market value, and Google search trends. These inputs can shift quickly, as seen in this recent swing from 25 to 74. The index followed Bitcoin's price rise from below $68,000 toward $80,000 over the following days.

The rally was triggered by the U.S. Treasury announcing it would double its long-end bond buybacks, which pulled down Treasury yields and pushed money into riskier assets. This move also led to a short squeeze, with billions of dollars in bearish crypto positions being liquidated as yields fell. Dogecoin surged 24% over the week, other major tokens rose up to 70%, and smaller, thinly traded coins jumped as much as 131%.

A market that swings from extreme fear to strong greed within a short time frame will naturally register on an index that weighs volatility and momentum heavily. However, this speed might explain why sentiment reached Greed quickly, even when the underlying price has not returned near its old highs.