Crypto Greed Jumps to Highest Point Since Before October’s $19B Market Wipeout

Crypto traders have shifted from fear to strong risk appetite in less than two weeks, sending the market’s Fear & Greed Index to its highest level since just before October’s record $19 billion liquidation event.

Alternative.me’s widely followed Crypto Fear & Greed Index rose to 74 on Tuesday from 27 on Aug. 12 before retreating to 65 on Wednesday. The gauge remained in fear territory from late July until Aug. 19 and reached a low of 25 on Aug. 6, a level categorized as “extreme fear.”

The indicator ranges from zero to 100 and combines several measures of market sentiment. Bitcoin volatility and price momentum carry the greatest weight, while social media activity, Bitcoin’s share of the overall crypto market and Google search trends also contribute to the reading. Scores above 50 signal greed.

Rather than predicting future market direction, the index is designed to show the level of risk appetite among traders at a given time.

The last comparable reading came on Oct. 5, 2025, only days before a historic market sell-off forced approximately $19 billion worth of leveraged positions to close in a single session. It remains the largest liquidation event recorded in the crypto market.

Crypto Traders Return to Riskier Assets

The sharp improvement in sentiment has coincided with a broad cryptocurrency rally. Bitcoin rose from below $68,000 last week to nearly $80,000, while several major tokens recorded gains of up to 70%.

Speculative investors have also moved back into the so-called debasement trade following months of strong interest in artificial intelligence, memory-chip and semiconductor stocks.

Smaller tokens have seen even more aggressive buying. Dogecoin has gained roughly 24% over the past week, while several low-cap memecoins have posted gains exceeding 100%.

Thinking Cat climbed 131% over seven days, Cash Cat rose 113%, and Dog (Bitcoin) nearly doubled.

The surge in demand for thinly traded tokens points to a sharp return of risk-taking. However, exceptionally high greed levels can also signal that traders are becoming overly confident, potentially setting the stage for a correction.

Federal Reserve Signals Could Shape the Next Move

The market’s next major test comes Friday, when Federal Reserve Chair Kevin Warsh delivers his first Jackson Hole keynote as chair.

Traders will closely examine his comments for clues about interest rates and inflation following weeks of volatility in long-term Treasury yields. A recent decline in those yields helped trigger Bitcoin’s climb from below $68,000.

With crypto sentiment now firmly tilted toward greed, Warsh’s remarks could help determine whether the rally continues or whether investors have become too aggressive.